Abstract:
This paper reviews the theoretical background of financial stability and focuses on the contributions of the national balance sheet approach to the modeling and analysis of financial stability. It also outlines recent developments in national balance sheet compilation by major countries and international organizations. Building on this foundation, the paper constructs a theoretical framework for analyzing financial stability from the perspective of national net wealth and offers a new interpretation of China’s financial stability:
(1) SNA-based solvency serves as the “ballast” for weathering financial crises;
(2) Regulatory efforts should focus on the real economy to prevent crises at the source;
(3) A well-designed macroprudential framework is essential for early warning and preemptive responses to systemic risk;
(4) Macroprudential policy must strike a balance between vigilance and overreaction to financial risk.

Keywords: National Balance Sheet; National Wealth Approach; Financial Stability