Table 2 Research variables and data...

Table 2

Research variables and data sources

Variables	Definition	Symbol
Control variable
Country-specific
Inflation	Consumer price index	INFL
Economic development	Natural logarithm of GDP	$LOGGDP$
Boone index	A measure of the degree of competition based on profit-efficiency in the banking market. It is calculated as the elasticity of profits to marginal costs. An increase in the Boone indicator implies a deterioration of the competitive conduct of financial intermediaries	BOONE
PCA_REG_QULLT	An index reported by Heritage Foundation measuring the quality of regulations implementation in each country
Explanatory variables
Capital regulatory variables	Whether the capital requirement reflects certain risk elements and deducts certain market value losses from the capital before minimum capital adequacy is determined	CAP_REG
Industry entry variable	Competition and regulations related to the entry into the banking industry	ENTRY_REG
Bank activity regulatory variable	The degree to which national regulatory authorities allow banks to engage in the following three fee-based rather than more traditional interest-spread-based activities	ACT_REG
Supervisory power variable	An important aspect of supervision is whether the supervisory authorities possess the Power to obtain information from banks and take an assortment of actions to change the behavior of banks based on the assessments of the official supervisory authority	SUP_POW_REG
Supervisory structure variable	The degree to which the supervisory authority is independent within the government and the average tenure of a professional bank supervisor	SUP_STRUC_REG

Variables	Definition	Symbol
Control variable
Country-specific
Inflation	Consumer price index	INFL
Economic development	Natural logarithm of GDP	$LOGGDP$
Boone index	A measure of the degree of competition based on profit-efficiency in the banking market. It is calculated as the elasticity of profits to marginal costs. An increase in the Boone indicator implies a deterioration of the competitive conduct of financial intermediaries	BOONE
PCA_REG_QULLT	An index reported by Heritage Foundation measuring the quality of regulations implementation in each country
Explanatory variables
Capital regulatory variables	Whether the capital requirement reflects certain risk elements and deducts certain market value losses from the capital before minimum capital adequacy is determined	CAP_REG
Industry entry variable	Competition and regulations related to the entry into the banking industry	ENTRY_REG
Bank activity regulatory variable	The degree to which national regulatory authorities allow banks to engage in the following three fee-based rather than more traditional interest-spread-based activities	ACT_REG
Supervisory power variable	An important aspect of supervision is whether the supervisory authorities possess the Power to obtain information from banks and take an assortment of actions to change the behavior of banks based on the assessments of the official supervisory authority	SUP_POW_REG
Supervisory structure variable	The degree to which the supervisory authority is independent within the government and the average tenure of a professional bank supervisor	SUP_STRUC_REG

Note(s): Regulatory and supervisory indices are from the World Bank/Barth–Caprio–Levine Bank Regulation and Supervision Survey (BRSS). Macroeconomic variables (INFL, GDP) are from the World Bank World Development Indicators (WDI). Boone indicator (BOONE) is from the World Bank Global Financial Development Database (GFDD)/related Boone indicator series

Source(s): All transformations and composite indices are authors' calculations

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