This chapter offers a comprehensive exploration of financial stability, focusing on the crucial aspect of systemic risk. Systemic risk refers to potential disruptions in the financial system that can lead to widespread financial distress, simultaneously affecting multiple institutions and markets. A central theme of this unit is the role of financial soundness indicators in assessing and monitoring systemic risk. Financial soundness indicators are critical for evaluating financial institutions’ and markets’ health and stability, providing valuable insights into potential vulnerabilities and threats. Financial soundness indicators are classified into core and additional sets. The core set comprises the following groups of indicators: