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This study examined the relationship between board capital and the financial distress level for a sample of listed banks in Malaysia from 2003 to 2013. Using robust panel regression with 88 pooled firm-year observations, we found that board capital and leverage are statistically significant with banking financial distress in Malaysia. The results imply that the knowledge of directors such as experience, education, and networking can improve the firm’s management and avoid the firm facing a financial distress problem. Lastly, this study provides useful information to assist shareholders in choosing board directors regarding reducing the risk of financial distress.