Abstract
The sustainable development of an economy greatly depends on the stability and efficiency of the banking institutions. Banking system stability, no doubt is not only a trajectory of banking system development but an indispensable element in minimizing the extensive economic and social impact that may arise from the industry. This present study therefore, seeks to explore the determinants of banking system stability in a hostile and fragile banking environment within an unstable and fragile economy like the Nigerian case. Additionally, the study also primarily explore the important macroeconomic, banking system factors, financial factors and shocks influencing the Nigerian banking system stability for the purpose of identifying macro-financial linkages. The descriptive phenomenological method was employed in the research methods. It was discovered in the study that systemic bank distress, specific bank distress and common bank distress are drivers of banking system stability. Again, poor risk management, regulatory and supervisory, economic, institutional, financial structure, bank liquidity and bank management challenges basically account for the banking system instability in Nigeria. Ipso-facto, unless these intervening factors are disconcerted, the needed banking stability capable of propelling economic development in the country is a wishful craves; thus, 'Perhaps the Wolf will arrive but when?'