The Impact of Banking Penetration on Foreign Direct Investment in ASEAN: Comparative Analysis of Indonesia, Malaysia, and Thailand

High banking penetration is considered an important indicator of the stability and maturity of a country's financial system, which can attract foreign direct investment (FDI). This phenomenon is becoming increasingly relevant in the ASEAN region, which continues to seek to increase its attractiveness for foreign investors amid global challenges. The study used secondary data from the International Monetary Fund covering the period from 2010 to 2021. The analysis was carried out using the regression of panel data of the Random Effect Model type. The results show that banking penetration has a significant positive impact on FDI in ASEAN. This confirms that foreign investors' confidence in the domestic financial system is very important. In Indonesia, strong banking penetration supports FDI growth despite regulatory and infrastructure challenges. In Malaysia, expanding access to digital financial services is important, while in Thailand, cooperation between the banking and telecommunications sectors is an example for other ASEAN countries. ASEAN countries need to focus on increasing banking penetration through policies that support digital financial services, improve corporate governance, and strengthen regional cooperation. The originality of this research lies in an in-depth comparative analysis of the impact of banking penetration in Indonesia, Malaysia, and Thailand, providing insights and policy strategies that can be adopted by other ASEAN countries to increase their FDI attractiveness.