[The Herald] When the market perceives the sector to be under-capitalised they may read it to mean that there is potential instability in the market hence can lead to client flight. Financial stability can be defined as a condition in which the financial system -- intermediaries, markets and market infrastructures -- can withstand shocks without major disruption in financial intermediation and in the general supply of financial services.Financial Sector Stability means that the financial system has the capability to al ......
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