Two-dimensional (2-D) discrete systems with periodic coefficients are considered for stability. These systems are called periodically shift variant (PSV) digital filters and have many applications in signal processing that include the filtering of 2-D signals with cyclostationary noise, scrambling of digital images, and implementation of multirate filter banks. In this paper, the filters are formulated in the form of the well known Fornasini-Marchesini state-space model with periodic coefficients. This PSV model is then studied for stability. Two sufficient conditions and one necessary condition are established for asymptotic stability. Some examples are given to illustrate the results. Mei-Qin Chen received the B.S. degree in mathematics from Eastern Illinois University in 1983 and the M.S. and Ph.D. degrees in mathematics from the University of Illinois at Champaign-Urbana in 1985 and 1989, respectively.