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New alternative measuring financial stability

Author

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  • Hassan Belkacem GHASSAN

    (Umm Al-Qura University, Department of Economics, Saudi Arabia.)

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.

Suggested Citation

  • Hassan Belkacem GHASSAN, 2017. "New alternative measuring financial stability," Turkish Economic Review, KSP Journals, vol. 4(3), pages 275-281, September.
    • Handle: RePEc:ksp:journ2:v:4:y:2017:i:3:p:275-281
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    References listed on IDEAS

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    Cited by:

    1. Hassan Belkacem Ghassan & Abdelkrim Ahmed Guendouz, 2019. "Panel modeling of z-score: evidence from Islamic and conventional Saudi banks," International Journal of Islamic and Middle Eastern Finance and Management, Emerald Group Publishing Limited, vol. 12(3), pages 448-468, July.
    2. Zulkufly Ramly & Nurusysyifa Nordin, 2018. "Sharia Supervision Board, Board Independence, Risk Committee and Risk-taking of Islamic Banks in Malaysia," International Journal of Economics and Financial Issues, Econjournals, vol. 8(4), pages 290-300.

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    More about this item

    Keywords

    Stability; Liquid assets; Illiquid assets; z-score; g-score; probability of default.;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation

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