Suitability of Z-score index to measure financial stability of Syrian Traditional Private Banks


Abstract in English

This paper aimed to study The suitability of (Z-score) index to measure banking financial stability of Syrian Private Traditional Banks, To achieve this purpose, the researcher built a model during the period from Q1-2010 to Q4-2014,using Cross-Sectional series of Banking financial performance variables and analyzing it using Panel Data Analyze. The main results are:  The suitability of (Z-Score) index to measure financial stability of Syrian Traditional Private Banks.  The financial stability of all Syrian Traditional Private Banks.  The significant positive relation between Book to market value(BM), Capital Adequacy (Adec) and financial stability index (Z-Score).  The significant negative relation between Quality of loan portfolio (QUAL), Deposit employment (NET/DEP) and financial stability index (Z-Score).  The absence of significant relation between(Z-Score) and banking performance ratios: Cover ratio(COV), bank's Liquidity (LIQ), and profitability measured by the ratio of Adjusted Return on Equity (Roe$).

References used

Baltagi B. H, Econometric analysis of panel data, 2nd edition, New York: John Wiley & Sons,2000,P50
Boyd, J., De Nicolo, G, Jalal, A, Bank risk-taking and competition: new theory and new evidence IMF Working Paper, N.6, 2006, p20-42
Curry, Elmer, Fissel, Can the equity market help predict bank failure?, Working Paper, FDIC, 2004.P17

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