Definition, Meaning & Synonyms

financial instability

noun

/faɪˈnænʃəl ˌɪnˈsteɪbɪlɪti/

Definition

Financial instability refers to a situation where financial markets and institutions experience significant turbulence, leading to disruptions in the financial system and adverse impacts on the economy.

Examples

The economic climate has recently shown signs of financial instability, raising concerns among investors.
During periods of financial instability, businesses may struggle to secure funding.
Governments often implement policies to mitigate the effects of financial instability.

Meaning

The term signifies a lack of steady growth or sound financial health within an economic setting, often resulting in economic crises or financial distress.