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What is Financial Stability
Financial Stability is an economic term that refers to the financial balance. It breaks down into short-term stability - liquidity and long-term stability - solvency.

Financial Stability is an economic term that refers to the financial balance. It breaks down into:

  • Short-term financial stability - Liquidity
  • Long-term financial stability - Solvency

Use of the financial stability in practice: In an enterprise it is used by CFO in financial analysis to analyze ratios. Indicators of financial stability are among the most widely used indicators in financial analysis.

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Last update: 16.08.2016

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