The Stability of The Financial System: a Comparison of Developed and Less Developed Countries

In this study, we examine the relationship between development level of a country and stability its financial system. We look at seven measures stability. These are Bank z-score, non-performing loans to gross loans, capital total assets, credit bank deposits, Regulatory risk-weighted Liquid assets deposits short term funding, Provisions loans. First, compare developed less countries’ measures. Do countries have more stable systems than or is opposite true? When high-income low- middle-income countries, find that better “stability” values in five For other two measures, do not any significant difference groups. Then, how OECD differ from non-OECD terms their system’s OECD-member Non-OECD-member four three conclude especially members, under greater risk when facing an economic/financial crisis.