The major objective of this study is to inspect the differences in the effect of derivatives on the stability between banks from emerging countries and those from recently developed countries. According to the repercussions of the recent financial crisis, we divide the whole period into normal...

This current research tries to answer the widespread debate about the role of derivatives in propagating the last financial crisis. So, this work aims to examine the effect of derivatives on bank stability in emerging countries by using the bank stability index (BSI) as developed by Ghosh (2011)...