The purpose of this study was to examine the influence of institutions and macroeconomic factors on the capitalization of securities in East Asian and Pacific countries (EAP). A balanced panel data is used to collect time-series from 2008 to 2018 in 11 EAP countries and to analyze the impacts of institutions, macroeconomics and stock market capitalization by the general moment method (GMM). Instead of measuring in detail each aspect of the institution as in previous studies, the six institutional aspects as defined by Kaufmann et al. (2011) [Kaufmann, D., Kraay, A., & Mastruzzi, M. (2011). The worldwide governance indicators: methodology and analytical issues. Hague Journal on the Rule of Law, 3(2), 220-246.] were calculated into one institutional variable. The institutional variables in this article were measured to ensure a more logical and consistent way of institutional influence on stock capitalization. The results indicate that, the institutions and macroeconomic factors were significant in forecasting the stock market capitalization size. Institutional, economic growth and savings had positive effects, macroeconomic factors such as inflation and high interest rates had a negative impact on stock capitalization in EAP countries. The institutions and macroeconomic factors had a significant impact on stock capitalization in EAP countries, the majority of developed markets had better institutions, better control of inflation and interest rates, and most undeveloped markets had higher economic growth and domestic savings.

These days, there are increasing changes on environmental and economic networks and different risks of various institutions affect the financial structure. Different institutions including financial and credit institutions are facing with the risk of lack of their timely obligations to make sure the repayment of the funds is granted. In this study, the effects of economic factors not affected by intentional behavior of customers are investigated. Statistical study of the banking system includes all public and private banks. Statistical research community from 2005 to 2010 is considered. The cross-sectional data of the study and a combination of regression analysis is used. The regression analysis of combined data, fixed effects model based on the data is a cross-sectional fit. According to results of regression analysis, Pearson and Spearman & apos; s Correlation Coefficient, there is no significant relationship between the inflation rate, employment rate, unemployment rate, the dollar, the euro, with import growth of credit risk in the banking system in Iran. Therefore, based on probability theory, it can be stated that the credit risk in the banking system in Iran under the influence of variables is not mentioned. In addition, positive and significant relationship between stock index and credit risk in the banking system in Iran has increased by Weber in this index increases and reducing credit risk is reduced.