This paper intends to explore the relationship between financial inclusion and financial stability under the scope of Asian economies. The linkage will be thoroughly investigated with country-level and bank-level data of 42 countries in three separate years: 2011, 2014, and 2017. In this study, an inclusive financial system is assessed by two dimensions: usage of financial services and access to the financial system. Usage of financial services ranges from account to credit, savings and payment services. Access to financial system measures the financial outreach where individuals can use financial services. Meanwhile, financial stability, which proxied by Bank Z-score is regarded as the dependent variable. We apply fixed effects regression and random effects regression to capture the impacts of financial inclusion upon financial stability. To enhance the robustness of the model, the Feasible Generalized Least Squares (FGLS) regression is therefore adopted as the solution for the random effects regression. The empirical findings exhibit an overall weak positive influence of financial inclusion on financial stability. The research results also provide both financial institutions and governments with insightful information, which helps them to have an appropriate financial development strategy, improve the regulatory framework and consequently enhance financial stability for the whole system.

Abstract
1. Introduction
2. Literature Review
    2.1. Financial Stability
    2.2. Financial Inclusion
    2.3. The Impact of Financial Inclusion onFinancial Stability
3. Data and Methodology
    3.1. Data
    3.2. Variables Selection
    3.3. Model Specification
4. Results
    4.1. Descriptive Analysis
    4.2. Empirical Results
5. Discussion
6. Conclusion
References

• Manh Hung PHAM(Banking Academy) Corresponding Author.
• Thi Phuong Linh DOAN(International School of Management and Economics, National Economic University)