This paper formulates a Bank Vulnerability Index (BVI) for ASEAN+3 banks and banking systems to facilitate the early detection of vulnerabilities for a more informed approach to surveillance and policymaking. The BVI is adapted from the conventional CAMELS rating system, with the use of granular bank-level data. The results suggest that the impact of the COVID-19 pandemic on ASEAN+3 banking sectors was temporary, likely attributable to the healthy buffers in place, and the implementation of strong prudential policies over time. Nonetheless, several soft spots have been identified, notably, that banks’ earnings could be improved, and some domestic systemically important banks should work on strengthening their governance and liquidity profiles. Further, ASEAN+3 banks could reduce climate change-related loans more concertedly, given rising concerns about global warming.