International Journal of Business, Economics and Management 2312-5772 2312-0916 10.18488/journal.62.2017.46.155.165 International Journal of Business, Economics and Management What Drives Banking Stability? Empirical Evidence from ECOWAS Countries International Journal of Business, Economics and Management International Journal of Business, Economics and Management 06-2017 2017 06-2017 06-2017 4 6 155 165 19 Oct 2017 18 Dec 2017 The study investigated the drivers of banking stability in ECOWAS countries. The results show that the stability in the banking sector is mainly influenced by the banking spread (Net Interest Margin-NIM). However, it finds that crises in the banking sector pose a negative influence on stability. In addition, the result reveals that high percentage of foreign banks reduces stability in the banking industry. The impact of income diversification has a positive influence on stability even though the effect is weak. Similarly, the impact of more concentrated banking industry on stability is positive but insignificant.