New alternative measuring financial stability

Ghassan, Hassan B. (2017): New alternative measuring financial stability.

Abstract

If the z-score index is widely used as a measure of the stability in conventional banks, it would be more reliable to find an appropriate measure of the stability for all type of banks. Knowing that the cooperative or Islamic banks follow different contracts forms of investments such the PLS system and are closer to real economic, by considering the illiquid assets, we expect that the new measure labelled g-score, associated to tangible economic growth, reflects multiple risks and allows to track the banking stability.

• Item Type: MPRA Paper
• Language: English
• Keywords: Stability, Liquid assets, Illiquid assets, z-score, g-score, probability of default.
• Subjects: G - Financial Economics > G0 - General > G00 - General; G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages

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