Providing an index to measure financial stress

financial stress is a kind of mediating channel between shocks and the occurrence of financial crises in the economy. The purpose of this research is to provide a suitable index for measuring financial stress. Based on the nature and method of conducting, the current research is a combination of descriptive and correlational research.Ethical Considerations: In all stages of writing the present research, while respecting the originality of the texts, honesty and trustworthiness have been observed. The findings showed that the variables of oil price, GDP, economic growth, government debt risk, exchange rate premium, free exchange rate, consumer price, total stock exchange index (TEPIX), investors' reluctance to hold risky assets, The volume of bank deposits, credits granted to the private sector, foreign currency liabilities in the banking sector, profitability of the banking sector, beta (β) of the banking sector, housing market and herd behavior have been identified as effective variables in developing the financial stress model. This study can be a reference for policy makers such as the Ministry of Education and the banking system. The Ministry of Education may consider and introduce financial literacy education at the elementary school level to the university level. This early exposure is important because it shapes financial behavior from an early age. On the other hand, the banking system needs to formulate financial policies, especially credit loan facilities, whether it is a credit card, car loan, personal loan or real estate loan, which is suitable for young investors. Apart from that, the banking system should also ensure that any change in monetary policy does not cause a financial shock to the personal financial detriment of the youth.