J 2018

The evaluation of banking stability in the European Union countries

KOČIŠOVÁ, Kristina and Daniel STAVÁREK

Basic information

Original name

The evaluation of banking stability in the European Union countries

Authors

KOČIŠOVÁ, Kristina (703 Slovakia) and Daniel STAVÁREK (203 Czech Republic, belonging to the institution)

Edition

International Journal of Monetary Economics and Finance, 2018, 1752-0479

Other information

Language

English

Type of outcome

Článek v odborném periodiku

Field of Study

50206 Finance

Country of publisher

United Kingdom of Great Britain and Northern Ireland

Confidentiality degree

není předmětem státního či obchodního tajemství

RIV identification code

RIV/47813059:19520/18:00011226

Organization unit

School of Business Administration in Karvina

Keywords in English

FSI; financial soundness indicators; BSI; banking stability index; EU countries.

Links

GA13-03783S, research and development project.
Změněno: 7/2/2020 10:56, RNDr. Daniel Jakubík

Abstract

V originále

Successful development of the economy is based on the effective and stable performance of credit institutions. This paper discusses some of the existing efforts to evaluate stability in the financial or banking system and brings attempts to construct the banking stability index (BSI), taking into account indicators of the financial strength of banks and major risks affecting banks in the banking system. The BSI is then used for evaluation of banking stability in the European Union (EU) countries. Results showed that in 2014 countries with the most stable banking sectors were Luxembourg and Estonia. On the opposite end of the scale were banking sectors in Spain, Portugal and Greece. The outcome of the study showed a decline of the average banking stability in EU countries during the period of 2005-2008 and its improvement since 2009. The improvement in last year's was positively affected mainly by the development of the capital adequacy.