IDEAS home Printed from https://ideas.repec.org/a/blg/reveco/v68y2016i2p188-200.html
   My bibliography  Save this article

The Role Of The Z-Score Model In Assessing Financial Stability. Evidence From The Commercial Banks Listed On Bucharest Stock Exchange

Author

Listed:
  • BADEA Irina-Raluca

    (University of Craiova, Craiova, Romania)

Abstract

This paper represents a theoretical and practical approach regarding one of the alternatives to measure financial stability, namely the Z-score model.It is well known that the Z-score model was firstly developed for manufacturing firms, but the initial model was revised in order to become operational for banks as well. Therefore, the main goal of the paper is using Z-score for the banks listed on Bucharest Stock Exchange in order to determine their stability or instability. The Z-score method allows comparison among different institutions' stability in a simple and elegant way and proves to have more advantages than disadvantages in practice.

Suggested Citation

  • BADEA Irina-Raluca, 2016. "The Role Of The Z-Score Model In Assessing Financial Stability. Evidence From The Commercial Banks Listed On Bucharest Stock Exchange," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 68(2), pages 188-200, September.
    • Handle: RePEc:blg:reveco:v:68:y:2016:i:2:p:188-200
    as

    Download full text from publisher

    File URL: http://economice.ulbsibiu.ro/revista.economica/archive/68213badea.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kondratenko, Anatoly, 2005. "Physical Modeling of economic systems," MPRA Paper 6123, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Canan SANCAR & Yusuf Ekrem AKBAŞ & Esra CAN & Beyhan KILINÇER, 2023. "The effect of central bank independence on financial stability in developed countries: evidence from the Fourier procedure," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(4(637), W), pages 203-218, Winter.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. FANTANA Raul-Sorin, 2016. "The Exchange Activity And Quantic Economics," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 68(2), pages 161-172, September.
    2. Paras M. Agrawal & Ramesh Sharda, 2013. "OR Forum---Quantum Mechanics and Human Decision Making," Operations Research, INFORMS, vol. 61(1), pages 1-16, February.

    More about this item

    Keywords

    financial stability; Z-score; ROA; Bucharest Stock Exchange;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

    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:blg:reveco:v:68:y:2016:i:2:p:188-200. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Eduard Alexandru Stoica (email available below). General contact details of provider: https://edirc.repec.org/data/feulbro.html .

    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.