Improving the Methodology for Assessing the Financial Stability of Banks
No Thumbnail Available
Date
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Academic Journal Incorporations
Abstract
Description
Assessment of financial stability of banks is important for the stability of the banking system. Indicators such as capital adequacy, credit risk assessment, liquidity assessment, market risk, profit contribute to the prompt identification of risks of individual credit institutions. As a result, there are no negative consequences in the banking system. The article develops proposals for improving the methodology for assessing the financial stability of banks as a consequence of assessing the financial stability of the banking system on the basis of a summarizing ratio using data analysis for the corresponding period.
Keywords
Financial stability ratio of banks, return on assets, return on capital, share of problem loans in the total amount of loans, liquidity ratio