Abstract

Financial stability and the level of confidence are important aspects of the economic system that are closely interrelated. This paper explores this relationship by focusing on the impact of financial stability, such as the soundness of the banking system and financial institutions, on the level of confidence of both market partici-pants and society as a whole. Particular attention is paid to the impact of the level of trust on financial stability and, in turn, how a lack of trust can contribute to financial shocks and crises. Analyzing these aspects, the study highlights the importance of maintaining not only financial stability, but also a high level of trust in order to achieve economic development. The paper also draws attention to the specific mechanisms through which financial stability affects the level of confidence, and examines factors such as the functioning of financial insti-tutions, general economic trends, and financial crises, their causes and consequences. This approach allows not only to understand the interrelation of these two aspects, but also to highlight the key factors required for sustainable and effective economic development.

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