IDEAS home Printed from
   My bibliography  Save this article

The role of the central bank in ensuring financial stability: lessons from foreign experience for Ukraine


  • A. Shkliar


The author reveals the need for the central banks (CB) to provide financial stability. The basic functions of an operationally independent central bank are studied as well as the concept of financial stability and the compatibility between such CB's targets as price stability and financial stability. The article considers the dilemma of "lean vs clean" related to the speculative growth of assets prices and systematizes the theoretical foundations and practical evidences of each approach. The author analyzes the existing CB's instruments of ensuring financial stability as well as the existing shortcomings in the approaches to regulation and supervision in the banking sphere. The use of last resort lender instruments by the CB is examined, and the criteria and risks associated with their wide use are outlined. The world experience of the CB's responsibility for financial stability is systematized with an emphasis on the strong need to develop and implement macroprudential monitoring and regulation to ensure financial stability as one of the key targets of the Central Bank of Ukraine.

Suggested Citation

  • A. Shkliar, 2013. "The role of the central bank in ensuring financial stability: lessons from foreign experience for Ukraine," Economy and Forecasting, Valeriy Heyets, issue 4, pages 49-61.
  • Handle: RePEc:eip:journl:y:2013:i:4:p:49-61

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eip:journl:y:2013:i:4:p:49-61. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Iryna Bazhal). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.