Assessment of financial stability of the banking sector based on composite index


Qubadova A.

Journal of Business and Economic Management, vol.6, no.6, pp.2-6, 2018 (Peer-Reviewed Journal)

Qısa məlumat

The purpose of this article is to analyze the financial stability of the banking sector of the group of countries and to build a risk map according to groups of countries based on basic indicators. The article presents the methodology of calculating the composite index, BSFSI. Using the Minmax method, the BSFSI sub-indices expressed in different units are comparable. The article presents a review of the methods of assessing the liquidity of a commercial bank. As a result of the calculation, the estimation of financial stability of the banking sector of 29 countries is based on composite BSFSI index.