The Financial Stability framework compromises a regime for stress testing and other risk management tools to assess the risks and vulnerabilities of the financial system. The Bank has implemented a regime of stress testing the larger commercial banks in regard to the resilience of their profitability and capital adequacy on a semi-annual basis. This regime is to be extended to the rest of the banking sector and systemically important financial institutions regulated by the Bank. Oversight of the payments systems which also falls under the framework to maintain financial stability in the system is currently based on the BIS and CPSS Core Principles but efforts are in train to adopt more risk based methods. In addition, the bank, under the Central Bank Act, has the power to assume emergency control of any bank or insurance company with a view to resolving any distress conditions of the particular institution. The Bank can act as lender of last resort for any distressed bank.

The Bank issues a Financial Stability Report followed by a Financial Stability Review annually. This Report and review provide information on the structure of the domestic financial system, assesses the impact of changes in the global financial environment, evaluates risks and vulnerabilities in the domestic financial sectors and outlines recourse and policies taken by the Bank in addressing the financial system.