Table 1

List of variables

VariableDefinitionProxy/Measurement
ROAProfitabilityReturn on assets (ROA): net income/total assets
L.ROALagged profitabilityCapture the influence of past profitability
DIGDigitalized bankingShare of population using internet banking
COVCOVID crisisDummy variable: 1 for period 2020–2022, 0 otherwise
CAPCapital ratio of the bankEquity/Total Assets
SIZSize of the bankNatural logarithm of total assets
AGEAge of the bankNatural logarithm of years since establishment
GDPReal GDPInflation-adjusted GDP (economic output)
MSPBroad money supply (M3)Growth of cash, deposits and other liquid assets
BSDBanking sector developmentBanks total assets/GDP
Source(s): Author’s compilation

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