Summary of expected effects of the study variables on bank performance and risk
| Variables | Bank performance | Bank risk |
|---|---|---|
| Bank capital (CAR, ETAR) | +/− | +/− |
| Bank risk (LNZSCORE, NPLTL, LLPNIR) | − | |
| Bank performance (ROAB) | − | |
| Liquidity (LIQD) | +/− | |
| Cost inefficiency (OETA) | +/− | + |
| Labor productivity (LP) | + | |
| Non-traditional activity (OFBSTA) | +/− | |
| Income diversification (INCD) | +/− | |
| Deposit ratio (DPR) | + | |
| Leverage (LEV) | + | |
| Market power (CONC3) | +/− | |
| Economic growth (GGR) | +/− | |
| Interest rate (BLINT) | − | |
| Inflation (INFLR) | + |
| Variables | Bank performance | Bank risk |
|---|---|---|
| Bank capital (CAR, ETAR) | +/− | +/− |
| Bank risk (LNZSCORE, NPLTL, LLPNIR) | − | |
| Bank performance (ROAB) | − | |
| Liquidity (LIQD) | +/− | |
| Cost inefficiency (OETA) | +/− | + |
| Labor productivity (LP) | + | |
| Non-traditional activity (OFBSTA) | +/− | |
| Income diversification (INCD) | +/− | |
| Deposit ratio (DPR) | + | |
| Leverage (LEV) | + | |
| Market power (CONC3) | +/− | |
| Economic growth (GGR) | +/− | |
| Interest rate (BLINT) | − | |
| Inflation (INFLR) | + |
Note:
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