Mofid University The Journal of Economic Studies and Policies 2423-4648 0 22 2012 12 21 Creating Financial Stability Index and Survey in the Developing Countries Creating Financial Stability Index and Survey in the Developing Countries 3 28 26160 10.22096/esp.2013.26160 FA Asadollah Farzinvash Associate Professor, Faculty of Economics, University of Tehran Ali Ghorbani Shiran PhD in Economics Journal Article 2011 10 25 Financial globalization and accordingly weakening the independent role of national financial markets are taking place. With regard to financial globalization trend, and financial crisis, the need to control the financial markets has made it necessary to construct new indices. But due to difficulty of this subject, a universal index has not been yet built. Thus, different studies of financial stability have used different indices. In this paper, firstly we have surveyed the empirical literature on financial stability and security, and indices that we have used. Then, we proposed a comprehensive index for financial stability (CFSI) to evaluate the stability of financial market in developing countries. The result of this study on 105 country shows that the financial stability increases as the degree of development of a country increases. This study also shows that the oil exporting countries have lower degree of stability relative to the other groups of countries and Iran has one of the most unstable financial markets in the world. Financial globalization and accordingly weakening the independent role of national financial markets are taking place. With regard to financial globalization trend, and financial crisis, the need to control the financial markets has made it necessary to construct new indices. But due to difficulty of this subject, a universal index has not been yet built. Thus, different studies of financial stability have used different indices. In this paper, firstly we have surveyed the empirical literature on financial stability and security, and indices that we have used. Then, we proposed a comprehensive index for financial stability (CFSI) to evaluate the stability of financial market in developing countries. The result of this study on 105 country shows that the financial stability increases as the degree of development of a country increases. This study also shows that the oil exporting countries have lower degree of stability relative to the other groups of countries and Iran has one of the most unstable financial markets in the world. https://economic.mofidu.ac.ir/article_26160_32d7f5dcce0010ba30b41ee9b36dbced.pdf