Table 4

Robustness check – Return on Assets (ROA)

Europe (dependent var: ROA)Asia (dependent var: ROA)
Model typeDynamic panel IV (Anderson-Hsiao)Dynamic panel IV (Anderson-Hsiao)
FinTech Index0.0065−0.0081***
Standard Error−0.0138−0.0022
p-value0.63680.0002
ControlsIncludedIncluded
F-statistic (Prob)26.14 (0.001)1562.4 (0.000)
ConclusionRobust NeutralityRobust Disruption

Note(s): Asian Model Fit: The F-statistic for the Asian model is notably high (1562.4), indicating strong joint significance of the regressors and the validity of the exactly identified instrument set. This is consistent with the high explanatory power (approx. R2 = 0.94) observed when utilizing bank-level efficiency and risk metrics (CIR, NPLs) to model ROA within the highly competitive Asian banking landscape

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