European analysis – regression results (dependent variable: ROE)
| Variable | (1) Static model (first-difference) | (2) Dynamic panel IV (Anderson-Hsiao) |
|---|---|---|
| FinTech Index (FT_EUR) | −0.1059 (0.7474) | 0.2838 (0.9996) |
| Significance | p = 0.8877 | p = 0.7765 |
| Lagged ROE (t−1) | – | −4.6712 (14.490) |
| Control variables | ||
| Cost-to-Income (CIR) | −0.8020*** (0.0569) | −1.0944 (2.0057) |
| Equity-to-Debt (ETD) | −4.0253 (3.9436) | −3.3913 (7.9788) |
| Loan-to-Deposit (LDR) | 0.1682 (0.3366) | −0.5274 (1.2225) |
| Bank Size (LNA) | −0.0894 (0.0818) | 0.0786 (0.2668) |
| Non-Performing Loans (NPL) | 1.1741 (4.0353) | 14.169 (39.397) |
| Capital Adequacy (RAR) | 3.2805 (13.246) | 4.6614 (8.8101) |
| Model diagnostics | ||
| Observations (N) | 80 | 72 |
| R-squared | 0.738 | – |
| F-statistic (p-value) | 29.37 (0.000) | 10.30 (0.244) |
| Result Verdict | Neutral/Insignificant | Neutral/Insignificant |
| Variable | (1) Static model (first-difference) | (2) Dynamic panel IV (Anderson-Hsiao) |
|---|---|---|
| FinTech Index (FT_EUR) | −0.1059 (0.7474) | 0.2838 (0.9996) |
| Significance | ||
| Lagged | – | −4.6712 (14.490) |
| Cost-to-Income (CIR) | −0.8020*** (0.0569) | −1.0944 (2.0057) |
| Equity-to-Debt (ETD) | −4.0253 (3.9436) | −3.3913 (7.9788) |
| Loan-to-Deposit (LDR) | 0.1682 (0.3366) | −0.5274 (1.2225) |
| Bank Size (LNA) | −0.0894 (0.0818) | 0.0786 (0.2668) |
| Non-Performing Loans ( | 1.1741 (4.0353) | 14.169 (39.397) |
| Capital Adequacy (RAR) | 3.2805 (13.246) | 4.6614 (8.8101) |
| Observations ( | 80 | 72 |
| 0.738 | – | |
| F-statistic ( | 29.37 (0.000) | 10.30 (0.244) |
| Result Verdict | Neutral/Insignificant | Neutral/Insignificant |
Note(s): Standard errors in parentheses. Significance: ***p < 0.01. Dynamic Model is exactly identified