The paper gives new results that contribute to the development of a stability theory for 2D nonlinear discrete and differential systems described by a state-space model of the Roesser form using an extension of Lyapunov's method. One of the main difficulties in using such an approach is that the full derivative or its discrete counterpart along the trajectories cannot be obtained without explicitly finding the solution of the system under consideration. This has led to the use of a vector Lyapunov function and its divergence or its discrete counterpart along the system trajectories. Using this approach, new conditions for asymptotic stability are derived in terms of the properties of two vector Lyapunov functions. The properties of asymptotic stability in the horizontal and vertical dynamics, respectively, are introduced and analyzed. This new properties arise naturally for repetitive processes where one of the two independent variables is defined over a finite interval. Sufficient conditions for exponential stability in terms of the properties of one vector Lyapunov function are also given as a natural follow on from the asymptotic stability analysis.