The Mandate of the Financial Stability Unit is to: safeguard the entire financial sector stability, inform policy makers and financial institution and the public about the possible risks to the financial system, provide recommendations on regulations and policies that would limit risks and resolve crisis situations in the financial system in an efficient and effective manner.
The objective of the Unit is to contribute to the stability of the financial system in Lesotho by strengthening the resilience of the financial system and mitigating the build-up of systemic risk, thereby ensuring a sustainable contribution of the financial sector to economic growth.
The functions of the Unit include the following:
- To develop and implement macro-prudential policy;
- To conduct macro-prudential surveillance;
- To conduct research on pertinent and emerging financial stability issues;
- To prepare financial stability reports;
- To develop time series data for a set of macro-prudential indicators (MPIs);
- To coordinate issues related to crisis management and resolution; and
- To serve as a secretariat for Financial Stability Committee.