Comparative Analysis of the Determinants of Financial Stability of Banks in Developed and Developing Countries

In this paper a study of the determinants of financial stability of banks in various groups of countries was conducted and a model of bank credit ratings was created. A sample of indicators of 373 banks from 43 countries for the period from 2007 to 2019 was used for modelling. To analyze the differences between different groups of countries, countries were classified by income level and by membership in various economic, trade and political unions. As a result final model of the ordered logit type was obtained. Model includes 6 indicators unique to each bank, country corruption index and slope and intercept dummy variables that are responsible for the country affiliation with a group of high-income countries, BRICS and CIS. The final model allows predicting bank ratings with an accuracy of 70% within 2 points of the rating scale, which was proved on data out-of-smaple.