Financial Innovation, Sustainable Economic Growth, and Credit Risk: A Case of the ASEAN Banking Sector

A dynamic and rapidly changing global financial environment is posing various risks for the banking sector. Therefore, future of Association Southeast Asian Nations (ASEAN) banks depends on how efficiently effectively they manage these risks. Among risks, a credit risk most crucial Thus, current study aims to analyze impact innovation sustainable economic growth ASEAN banks. For this purpose, sample 4 countries from 2011 2018 selected, by applying panel-corrected standard error (PCSE) approach, both variables were found be significant contributor toward risk. Current research will not only beneficial management countries’ but also provide help overall industry their respective regulatory bodies understand behavior banks’ regarding growth. play an essential role concerning stability sector in region.