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Financial stability is a key element of good governance
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[QUOTE="Holicent, post: 267148, member: 76163"] Financial stability is defined as a state in which the economy is able to function effectively, with minimal or no disruption from the financial system. This fosters economic growth and development by enabling nations to finance investments and projects, support economic growth and job creation, provide social benefits such as health care and education, and reduce poverty. Financial stability is a key element of good governance. The rule of law, accountability and transparency are essential to maintain financial stability. In order to achieve financial stability, it is necessary to build up the capacity of the state machinery, especially the financial sector. Financial stability requires that all relevant stakeholders must be involved in decision-making processes. The government must be transparent and accountable at all levels. The private sector must develop strong internal controls and have clear standards for performance management. In addition, there should be adequate regulation for monitoring and enforcement by independent agencies or agencies with sufficient financial resources to conduct effective supervision over banks and other regulated entities. It is also important that there be strong regulatory institutions that protect consumers' interests through effective supervision over these institutions in accordance with international standards of good governance. [/QUOTE]
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Financial stability is a key element of good governance
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