Akademik Məlumat İdarəetmə Sistemi
37th International Scientific Conference on Economic and Social Development - Socio Economic Problems of Sustainable Development, Baku, Azerbaijan, 14 - 15 February 2019, pp.303-311
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, which allows making a comparative assessment of . financial stability of the banking sector of different countries. Using the Minmax method, the BSFSI sub-indices expressed in different units are comparable and can be used in comparative analysis. 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 on the basis of composite BSFSI index. The index BSFSI gives the ability in the most general form to assess the banking sector from the point of view of international competitiveness, and to compare it with other countries. On the other hand, this index allows identifying the strengths and weaknesses of the current . financial condition of the banking sector at the level of individual countries and monitoring its sustainability. At the same time, the index does not allow us to judge the sources of risk if, for example, they are . financial instruments. Thus, our index allows us to consider systemic risk as the probability of a serious downturn in the financial system. In this study, based on data on the basic indicators of the stability of the banking sector of 29 countries, we have calculated the BSFSI index, conducted the analysis for individual countries and groups of countries. In particular, on the basis of the BSFSI index, we constructed a map of risks for the financial stability of the banking sector in developed countries, the CEE and CIS countries, and countries with risky debt.