Analysis of the tradeoff between competition and financial stability has been at the center of academicand policy debate for over two decades and especially since the 2007–2008 global financial crises. Herewe use information on 14 Asia Pacific economies from 2003 to 2010 to investigate the influence of bankcompetition, concentration, regulation and national institutions on individual bank fragility as measuredby the probability of bankruptcy and the bank’s Z-score. The results suggest that greater concentrationfosters financial fragility and that lower pricing power also induces bank risk exposure after controllingfor a variety of macroeconomic, bank-specific, regulatory and institutional factors. In terms of regulationsand institutions, the results show that tougher entry restrictions may benefit bank stability, whereasstronger deposit insurance schemes are associated with greater bank fragility.