Financial Crime World

Establishment of National Financial Stability Council in Tajikistan

In a move to mitigate potential risks and global financial crises on its national economy, the World Bank has provided technical assistance to establish the National Financial Stability Council (NFC) in the Republic of Tajikistan. The council was established by Resolution No. 331 of the Government of the Republic of Tajikistan dated June 21, 2018.

Composition of the National Financial Stability Council

The NFC is an interagency advisory body composed of:

  • Minister of Economic Development and Trade as Chairman
  • Chairman of the National Bank of Tajikistan as Coordination Secretary
  • Minister of Finance as Deputy Chairman
  • Chairman of the Individual Deposit Insurance Fund as a permanent member
  • Representative from the Executive Office of the President of the Republic of Tajikistan as an independent observer

Objectives and Responsibilities

The council’s main goals include:

  • Performing regular assessments of financial stability
  • Coordinating macro- and micro-prudential policies to eliminate possible vulnerabilities
  • Identifying and evaluating available risks and potential threats to financial system stability
  • Developing proposals for restoring financial stability
  • Promoting coordination of information sharing among members
  • Providing advice to the Government on regulatory policy compliance
  • Developing, reviewing, and implementing emergency plans to manage and eliminate economic and financial crises

Emergency Planning

In cases of crisis situations or unforeseen destabilizing events, including natural disasters, the NFC will develop an emergency plan to prevent or mitigate their impact.

Review and Assessment

The council’s members will review various matters depending on their mandate, including:

  • How accurate assessments of financial institutions will be made
  • Distribution of risks throughout the financial system
  • Procedures for applying stress-testing and early warning systems

The NFC meets at least once every six months, with extraordinary meetings convened by the Chairperson based on instructions from the Government or upon proposal of the majority of members. The council’s establishment aims to prevent and overcome the negative impact of potential risks and global financial crises on the national economy.