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This Study investigates relationships among financial stability and factors of corporate governance. Research work use leverage ratio and liquidity ratio to measure financial stability and corporate governance factors are board of directors’ measure through numbers of board of directors, ownership structures measure through concentrate ownership, managerial ownership and institutional ownership structures. Study revealed that board of directors and managerial ownership structure is positively associated with financial stability, concentrated ownership and institutional ownership negatively associated with financial stability. Finely conclude that greater size of board of directors and managerial shares and discrete reduction of concentrate ownership and institutional ownership shares have profound effects on financial stability of commercial banks in Pakistan.

Keywords: Corporate Governance Factors, Financial Stability, Commercial Banks.