Financial stability is a situation when the financial system is able to withstand even when the economic situation is not good. It is a situation where financial markets, financial institutions are able to provide financial products, loans, and savings to businesses, communities, and households for more economic growth. You can read about the Financial Stability and Development Council (FSDC) – UPSC Notes in the given link.

Further readings:

1. Global Financial Stability Report 2020 – GFSR Report By IMF
2. Financial Stability Report (FSR) 2020 – An Overview of Biannual RBI Report