MEASUREMENT OF FINANCIAL STABILITY IN ROMANIA USING AN AGGREGATED INDEX

Daniela DANDARA-TĂBĂCARU Academia de Studii Economice din București

Abstract

The concept of financial stability does not yet benefit of a generally accepted definition. The concern of the authoritie with decision-making powers regarding the achievement of the objective of ensuring the stability of the financial system derives from the widespread awareness of the role that financial stability has for sustainable economic development and ensuring social welfare. Being a dynamic process, this phenomenon imposes multiple difficulties in being measured and the literature proposes a wide range of analysis models (calculation methods and variables used). In this article we have described a model for measuring financial stability using an aggregate index of financial stability. Keywords: financial stability, aggregated index of financial stability, sustainable economic development.