Economic Approaches to Financial Stability: A Theoretical Review and Analysis of Banking Determinants

Abstract

This article provides a comprehensive theoretical analysis of the concept of financial stability. Starting from the observation that there is no universal definition, it examines the different conceptual approaches, traces the explanatory theories of financial instability from the classics to modern schools of thought, and analyzes the determinants of stability with a focus on the banking sector. The article incorporates a specific methodological section and presents the main measurement tools. It highlights the particular implications for emerging economies, where banking stability constitutes the cornerstone of overall financial stability.