Market Resilience

Market resilience refers to the ability of a financial market or economy to withstand and recover from adverse conditions, such as economic downturns, crises, or external shocks. This concept encompasses the capacity of markets to absorb shocks, maintain stability, and return to a state of functioning effectively after experiencing disruptions. Resilient markets are characterized by their adaptability, the strength of their institutions, regulatory frameworks, and the presence of diverse and robust market participants. In a resilient market, processes are in place to facilitate recovery, including mechanisms for liquidity support, investor protection, and systematic risk management. Overall, market resilience is crucial for long-term economic health and sustainability, as it enables continued functioning and growth despite challenges.