Nexus of governance, macroeconomic conditions, and financial stability of banks: a comparison of developed and emerging countries

Financial Innovation

Table 1 Construction of financial stability of banks

Sr. #	Indicators	Weights	Impact
1	Capital to Asset Ratio	1/6	+
2	Capital adequacy	1/6	+
3	Bank provisions to non-performing loans (NPLs)	1/6	+
4	Non-Performing Loans/Total Loans	1/6	−
5	Return On Assets (ROA)	1/6	+
6	Return On Equity (ROE)	1/6	+

Source: The author collected data from Financial Soundness Indicators, IMF database from 2013–2020