IDEAS home Printed from https://ideas.repec.org/h/spr/conchp/978-3-032-14636-6_4.html

Financial Stability and Financial Soundness Indicators

Author

Listed:
  • Hanna Mysaka

    (Taras Shevchenko National University of Kyiv, Department of Accounting and Audit)

  • Ivan Derun

    (Taras Shevchenko National University of Kyiv, Department of Accounting and Audit)

Abstract

This chapter offers a comprehensive exploration of financial stability, focusing on the crucial aspect of systemic risk. Systemic risk refers to potential disruptions in the financial system that can lead to widespread financial distress, simultaneously affecting multiple institutions and markets. A central theme of this unit is the role of financial soundness indicators in assessing and monitoring systemic risk. Financial soundness indicators are critical for evaluating financial institutions’ and markets’ health and stability, providing valuable insights into potential vulnerabilities and threats. Financial soundness indicators are classified into core and additional sets. The core set comprises the following groups of indicators: Capital adequacy ratios: assessing the capital reserves of financial institutions to ensure they can absorb potential losses. Nonperforming loan ratios: identifying the proportion of loans in default, indicating credit quality and potential credit risk. Liquidity ratios: evaluating the ability of financial institutions to meet short-term obligations promptly. Asset quality indicators: examining the quality and riskiness of assets held by financial institutions. Profitability indicators: assessing the financial performance and earnings of financial institutions. Sensitivity to market risk: evaluating how susceptible financial institutions are to fluctuations in market conditions.

Suggested Citation

  • Hanna Mysaka & Ivan Derun, 2026. "Financial Stability and Financial Soundness Indicators," Contributions to Economics,, Springer.
    • Handle: RePEc:spr:conchp:978-3-032-14636-6_4
    DOI: 10.1007/978-3-032-14636-6_4
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:conchp:978-3-032-14636-6_4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.