and implementation of appropriate policies. A stable financial system is a key ingredient for a healthy and successful economy. Everyone needs to have confidence that the system is safe and stable, and functions are proper to provide vital services to the economy. Safeguarding and maintaining the stability of financial system is of primary importance to central banks of most countries. This is because low inflation and unemployment and fast economic growth, as common objectives of monetary and other state authorities, cannot be achieved in the modern economy without a developed and stable financial system through which the effects of monetary policy measures can be effectively channeled to other economic sectors. Instruments used by Central Bank to maintain financial stability The Central Bank has a variety of instruments for maintaining financial stability. Such instruments are: risks analyses and assessment market intelligence, that is creating widespread transparency with regard to central bank's objectives, publicly identifying risks, encouraging financial market participants to increase their awareness of these risks to act accordingly payment system oversight and development market operations and liquidity assistance acting as lender of last resort financial Stability committee other In order to identify probable risks affecting financial system, the Central Bank analyses a number of indicators of local and external financial system, as well as of the real sector, monitors financial markets, and oversights payment systems. At this stage, the Central Bank analyses financial system pillars (financial institutions, financial infrastructure and financial markets), as well as developments in macro economy. The Central Bank draws on analysis of all factors that might directly or indirectly affect stable functioning of the financial system. Another important tool to assess financial stability is indicators of financial soundness endorsed by IMF. The Central Bank also uses internationally known stress-testing models to assess the vulnerability of financial system in time of probable risks materialising. Stress scenarios are simple “what if” events, which allows to assess the costs of financial system or individual participants. In maintaining financial system's stability an important aspect is risk controlling. The Central Bank carries out risk controlling by implementing prudential and macro prudential policies, as well as supervision of the financial system. Prudential regulation presumes setting a certain regulatory framework for an individual institution in order to keep risks affecting an individual institution's stability under manageable limits. Macro prudential policy itself means using prudential instruments, which will provide the stability of the financial