In an exam task, I am asked to determine the transfer function of the following direct-time system and decide whether it's stable.
I think this system is canonical and the amplifiers 'on top' correspond to $b_2$, $b_1$ and $b_0$ from left to right in the following formula for the transfer function. Also, the amplifiers 'on the bottom' correspond to $-a_2$ and $-a_1$ similarly from left to right:
$$ H(z) = \frac{b_0 + b_1 z^{-1} + b_2 z^{-2}}{1 + a_1 z^{-1} + a_2 z^{-2}} $$
Therefore the transfer function of this system is
$$ H(z) = \frac{z^{-1} + 0.4 z^{-2}}{1 + (-0.5) z^{-1} + 0.06 z^{-2}} = \frac{z + 0.4}{z^2 + (-0.5)z + 0.06} $$
So it has a single zero at $z = -0.4$ and its poles are $p_1 = 0.3$ and $p_2 = 0.2$
I know I can draw the pole-zero plot for this function that will look like this:
How do I deduce the stability of the system from here?
I have learned things before like given the eigenvalues $\lambda_i$ of the system's $\underline{\underline{A}}$ matrix, a discrete-time system is asymptotically stable if $\forall \lambda_i : |\lambda_i| < 1$. Similarly, in continuous time, the criterion is $\forall \lambda_i : \mathrm{Re}\{\lambda_i\} < 0$.
But now I have poles, not eigenvalues. I have only found that if there is a pole that is to the right of the imaginary axis on the pole-zero plot, the system is unstable. However, here, I think this system should be asymptotaically stable (therefore also BIBO stable), but it has a pole in such a place.
Why is the transfer function given this way for such systems?