Analyzing Effects of Institutional Quality on Banking Stability: Evidence from Asean Countries

Purpose: The aim of this study is to examine the effect institutional quality on bank stability using bank-level data from 2010 2020. Theoretical framework: considers institutions perspective governance institutions. Accordingly, concept government related country's organizational foundation in terms governance, implying quality. Design/methodology/approach: uses GMM method and also choose Zscore as primary variable for stability. Findings: results show that increases banks. Moreover, with threshold model, countries above will increase In addition, macroeconomic banking characteristics variables such total assets, income diversification, control, inflation, GDP growth rate have a high significance model. Research, Practical & Social implications: shows study's empirical specific policy implications Government implementing policies improve Originality/value: there are not many researches done investigate economic crisis, matter among main concerns researches. Second, previous just focus aspect corruption ignore other aspects or factors. That’s why authors conduct research.