Table 1

Definition of key variables

CategoryAbbreviationDefinition/Construction
Dependent variablesTC (Total cost)Personnel expenses + Operating expenses + Interest expenses
PBT (Profit before tax)Income before taxes
Input-price variablesPL (Price of labour)Personnel expenses ÷ Total assets
PK (Price of physical capital)Operating expenses ÷ Fixed assets
PF (Price of funds)Interest expenses ÷ Total deposits
EquityBank’s equity capital (treated as a quasi-fixed input)
OutputsY1 (Total loans)Short- and long-term loans outstanding
Y2 (Other earning assets)Investment bonds + Bonds + Certificates of deposit
Determinants of efficiency (FinTech variables)DIG-PAYAdults (15+) who made or received a digital payment (%)
BUY-ONLINEAdults (15+) who bought something online via phone or internet (%)
PAY-BILLSAdults (15+) using a phone or the internet to pay bills (%)
N-MOB-TRANMobile & internet banking transactions per 1,000 adults (annual)
CARDAdults (15+) owning a debit or credit card (%)
ATMNumber of automated teller machines (country-wide)
Control variablesSizeNatural log of total assets
ROAAnnual return on assets (bank-level)

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