The significance of a Financial Stability Plan (FSP) in ensuring a country’s economic health cannot be overstated. Emerging as a vital aspect of monetary policy following the 2007 global financial crisis, the FSP serves as a proactive approach to safeguarding the financial system against unforeseen challenges.

Escalator clauses are provisions included in contracts that allow for the automatic adjustment of wages or prices based on pre-defined external factors. These clauses are commonly found in various types of agreements, including employment contracts, commercial leases, and supplier agreements.

The Debt-Service Coverage Ratio measures how much of your income is available to pay off your debts. Financial institutions, especially banks, use this ratio to check if an applicant is financially strong enough to repay loans. It helps them evaluate the risk of lending money.

The Debt to Equity Ratio is calculated as:Debt to Equity Ratio=Total LiabilitiesTotal Shareholders’ Equity\text{Debt to Equity Ratio} = \frac{\text{Total Liabilities}}{\text{Total Shareholders’ Equity}}Debt to Equity Ratio=Total Shareholders’ EquityTotal Liabilities​