Financial stability describes the state of the financial system that gives it the ability to withstand shocks, without significantly disrupting or significantly affecting its financial intermediation function, and to continue to provide financial services and products necessary to real economy entities and activities. Financial stability is affected when one or more systemic risks materialize. The effects of systemic risks can manifest both on the evolution of the economy and on financial intermediation. In a usual classification by risk categories, the components of systemic risk can be identified as market risk, credit risk, concentration risk, liquidity risk, solvency risk, operational risk, etc. However, many peculiarities exist depending on the type of financial institution, the classes of assets analyzed, the interdependencies with the functioning of public administration (sovereign risk), the stage in the economic cycle, cross-border influences and links, the types of vulnerabilities analyzed.
Especially after the global financial crisis, the international community of authorities with a role in ensuring the stability of the financial system has begun a long and difficult effort to identify, develop, calibrate and implement policies that improve its resilience to potential internal or external shocks. Until a few years ago, actions focused on macro-prudential instruments and policies for the banking sector, given its role and place in relation to the proper functioning of the real economy. In recent years, however, there has been a growing concern about the risks and vulnerabilities generated or transmitted from within non-banking financial markets, as their contribution to financial intermediation, such as the insurance sector, investment funds and central counterparties, has increased.
In order to maintain the stability of non-bank financial markets, the role of the ASF is to monitor and assess their risks and vulnerabilities in order to facilitate the necessary regulatory and supervisory actions to manage these situations. ASF aims to take preventive corrective measures and to have a prospective approach to the activities carried out.