Financial stability increasingly depends on the efficiency and transparency of collateral markets. Repo markets, government securities, and liquidity backstops form the backbone of modern financial infrastructure.
Stress events have shown that even highly rated collateral can become a source of systemic risk if concentration and leverage are mismanaged. Regulators and market participants share responsibility in reinforcing resilience through transparency, margin discipline, and robust risk frameworks.
Stability is not the absence of risk, but the capacity to absorb shocks.