This study aims to identify the relationship between bank stability, national framework, and market structure and thus enlighten the policy-making process in regional banking consolidation. The analysis was restricted to 64 listed commercial banks in Indonesia, Malaysia, Singapore, Thailand, and the Philippines, also known as ASEAN-5 by using the fixed effect model. This study found the following: a higher level of political stability had increased the level of bank stability; a higher level of the rule of law decreased the level of bank stability; a higher level of market concentration decreased the level of bank stability. These findings highlight several important implications. Firstly, the improvement of democratic institutions and systems that lead to political stability is needed to support performance improvement in the banking sector. Secondly, the legal framework improvements do not necessarily increase the bank stability. Thirdly, an increased competition in the banking industry is needed to increase the stability of the bank. Fourthly, efforts to integrate the financial system in ASEAN countries must be followed by an installation of improvements in governance and regulatory conditions.