What is the primary goal of a financial stability committee?

The primary goal of a financial stability committee is to identify and mitigate risks in the financial system. This involves monitoring the health of the financial institutions and the economy as a whole, assessing vulnerabilities, and taking measures to ensure that systemic risks are controlled and managed effectively. The committee plays a crucial role in preventing financial crises by implementing policies aimed at maintaining stability, thus safeguarding the financial system's integrity and protecting consumers and investors.

Options focused on generating profits for a central bank, managing retail banking operations, or maintaining employment rates are not aligned with the primary objectives of financial stability committees. Their focus is specifically on risk assessment and management rather than on profit generation, operational functions of retail banking, or employment considerations.