New alternative measuring financial stability

Hassan Belkacem GHASSAN

Abstract


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 forall 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 real economic growth, reflects multiple risks and allows to track the banking stability. 

Keywords. Stability, Liquid assets, Illiquid assets, z-score, g-score, probability of default.

JEL. G21, G24, G32, G33.


Keywords


Stability; Liquid assets; Illiquid assets; z-score; g-score; Probability of default.

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DOI: http://dx.doi.org/10.1453/ter.v4i3.1424

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