Strong financial systems that increase productivity, promote innovation, and allow resources to be reallocated efficiently across different sectors underpin sustained economic growth in countries at various stages of development. In fact, a vibrant financial sector supports innovation, economic stability, and resilience to financial shocks. However, this is not the case for all countries. While financial institutions in developed countries tend to adjust quickly to new circumstances, those in developing countries often lack the strength to overcome hurdles to sound financial systems. Therefore, it is acknowledged that financial institutions play a major role in economic growth. This paper investigates the role of financial institutions in economic growth by analyzing the data of 27 Asian countries from 2002 to 2021. In order to do so, the paper employs a two-step System GMM estimation me...