The study examines asymmetric evaluation of banking stability and bank performance in Nigeria. The study employs a longitudinal research design and utilizes secondary data covering the period from 1985-2018. The data was sourced from the CBN statistical bulletin. We consider the Non-Linear auto-regressive Lag Model (NARDL) to model the relationship between bank stability and bank performance in Nigeria. On the overall, the results suggest that in the short run bank stability/regulation variables, LIQR, LDR, CRR tend to exhibit significant asymmetric effects on bank performance, however, this effects tends to be quite weak as we move into the long run. The long run effects indicate that positive and negative shocks to stability variables do not appear to be significant in their effects on bank performance which this is quite insensitive to the nature of financial stability shocks. The study recommends that there is still need for banks to improve their stability ratios at levels that can adequately ensure that economic and financial shocks can be absorbed while still maintaining their day to day operations. The need for proper fiscal and monetary coordination is also important especially if monetary authorities expect to use stability indicators for effective instruments of monetary policy.