Table 1 Variable definitions and summary...

Table 1

Variable definitions and summary statistics

Variable	Definition	Data source	N.Obs	Mean (SD)	Min (Max)
Dependent
RWA	Risk weighted asset/Total asset	Banker	958	0.626 (0.196)	0.150 (1.062)
RoA	Net Profit/Total asset	Banker	1,000	0.009 (0.008)	−0.007 (0.047)
Independent
Gap	(Number of days between the first reported Covid case in the country less balance sheet end date for the reporting banks in the country)/(Maximum number of days between the first reported Covid case in any country less balance sheet end date for the reporting banks in that country)	Wikipedia, Banker	1,000	0.084 (0.186)	−0.223 (1.00)
Bank controls (Bank)
Size	Ln(Total asset)	Banker	1,000	10.378 (1.409)	8.246 (14.520)
CAP	Total capital/Total asset	As above	964	0.165 (0.053)	0.084 (0.410)
LTA	Gross loan/Total asset	As above	975	0.636 (0.149)	0.176 (0.934)
LTD	Gross loans/Gross total deposits	As above	923	0.964 (0.528)	0.260 (4.840)
CIR	Cost-to-income ratio	As above	992	0.512 (0.163)	0.203 (0.933)
Islamic	Dummy = 1, if a bank is Islamic, else zero	Author calculations based on The Banker	1,000	0.031 (0.173)	0 (1.00)
IW	Dummy = 1 if a bank has a Islamic window, else zero	As above	1,000	0.011 (0.104)	0 (1.00)
GSIB	Dummy = 1, if a bank is a globally systemically important bank, else zero	BIS (2019)	1,000	0.030 (0.171)	0 (1.00)
Banking industry (Industry)
DIS	Dummy = 1, if a country has explicit deposit insurance, else zero	Demirguc Kunt et al. (2014)	1,000	0.768 (0.422)	0 (1.00)
Country controls (Country)
Ln PCGDP	ln (per capita GDP, base 2010)	World Bank	995	10.024 (1.045)	7.121 (11.436)
Credit	Domestic private credit/GDP	Author calculations	888	1.273 (0.567)	0.105 (1.922)
Openness	(Exports + imports)/GDP	World Bank	996	0.695 (0.541)	0.275 (3.191)
INFL	Annual percentage change in GDP deflator (We set to zero all observations for which inflation takes negative value and apply the inverse hyperbolic since transformation (INFL = Ln(INFL+ $\sqrt{{1 + I N F L}^{2}})$	Author calculations, akin to Arcand et al. (2012)	995	1.179 (0.701)	0 (3.328)
Policy initiatives
Liquidity	Dummy = 1 if a country has provided liquidity support measures, else zero	IMF (2020a, b, c) and World Bank (2020)	1,000	0.933 (0.250)
Prudential	Dummy = 1 if a country has undertaken prudential measures, else zero	As above	1,000	0.939 (0.239)
Borrower	Dummy = 1 if a country has provided borrower support measures, else zero	As above	1,000	0.820 (0.384)
Asset purchase	Dummy = 1 if a country has undertaken asset purchase measures, else zero	As above	1,000	0.468 (0.499)
Policy rate	Dummy = 1 if a country has changed its policy rate, else zero	As above	1,000	0.872 (0.334)
Digital	Dummy = 1 if a country has undertaken measures to support digital activity, else zero	As above	1,000	0.251 (0.434)
Market functioning	Dummy = 1 if a country has undertaken measures to support market functioning, else zero	As above	1,000	0.606 (0.489)
Other controls (Other)
Governance	Estimate of World Bank Governance Indicator based on six areas: Voice and accountability, Political stability, Government effectiveness, Regulatory quality, Rule of law and Control of corruption. We obtain an aggregate value of the indicator using these six areas and classify countries into four quartiles depending on whether the aggregate value is less than or equal to 25th percentile, greater than 25th and upto 50th percentile, greater than 50th and upto 75th percentile and finally, above 75th percentile	World Bank Governance Indicators	999	2.478 (1.119)	1.00 (4.00)
Supervision	Dummy = 1 if bank supervision is with central bank, else zero	Anigner et al. (2019)	1,000	0.506 (0.500)
Interest	Cumulative interest rate cut by the monetary authority/central bank in the past one year	Central bank website	970	−0.462 (1.189)	−12.00 (3.25)
Multiple	Dummy = 1, if the monetary authority/central bank has resorted to multiple interest rate cuts during the past one year, else zero	As above	970	0.539 (0.499)
Legal	Legal origin of the country, according as French, English, German and Others (control category)	La Porta et al. (1998)	1,000	2.214 (0.861)	1.00 (4.00)
Parliamentary	Dummy = 1, if a country has parliamentary type of government, else zero	World Factbook, Central Intelligence Agency	1,000	0.346 (0.476)	0 (1.00)
Presidential	Dummy = 1, if a country has presidential or semi-presidential type of government, else zero	As above	1,000	0.374 (0.484)	0 (1.00)
Others	Dummy = 1, if a country has any type of government which is neither Parliamentary or Presidential (control category)	As above	1,000	0.280 (0.449)	0 (1.00)
Region	Dummy for different regions, based on World Bank classification. These include, East Asia and Pacific (control category), Europe and Central Asia, Latin America and Caribbean, Middle East and Central Asia, North Americas, South Asia and Sub-Saharan Africa	World Bank	1,000	2.661 (1.727)	1.00 (7.00)

Variable	Definition	Data source	N.Obs	Mean (SD)	Min (Max)
Dependent
RWA	Risk weighted asset/Total asset	Banker	958	0.626 (0.196)	0.150 (1.062)
RoA	Net Profit/Total asset	Banker	1,000	0.009 (0.008)	−0.007 (0.047)
Independent
Gap	(Number of days between the first reported Covid case in the country less balance sheet end date for the reporting banks in the country)/(Maximum number of days between the first reported Covid case in any country less balance sheet end date for the reporting banks in that country)	Wikipedia, Banker	1,000	0.084 (0.186)	−0.223 (1.00)
Bank controls (Bank)
Size	Ln(Total asset)	Banker	1,000	10.378 (1.409)	8.246 (14.520)
CAP	Total capital/Total asset	As above	964	0.165 (0.053)	0.084 (0.410)
LTA	Gross loan/Total asset	As above	975	0.636 (0.149)	0.176 (0.934)
LTD	Gross loans/Gross total deposits	As above	923	0.964 (0.528)	0.260 (4.840)
CIR	Cost-to-income ratio	As above	992	0.512 (0.163)	0.203 (0.933)
Islamic	Dummy = 1, if a bank is Islamic, else zero	Author calculations based on The Banker	1,000	0.031 (0.173)	0 (1.00)
IW	Dummy = 1 if a bank has a Islamic window, else zero	As above	1,000	0.011 (0.104)	0 (1.00)
GSIB	Dummy = 1, if a bank is a globally systemically important bank, else zero	BIS (2019)	1,000	0.030 (0.171)	0 (1.00)
Banking industry (Industry)
DIS	Dummy = 1, if a country has explicit deposit insurance, else zero	Demirguc Kunt et al. (2014)	1,000	0.768 (0.422)	0 (1.00)
Country controls (Country)
Ln PCGDP	ln (per capita GDP, base 2010)	World Bank	995	10.024 (1.045)	7.121 (11.436)
Credit	Domestic private credit/GDP	Author calculations	888	1.273 (0.567)	0.105 (1.922)
Openness	(Exports + imports)/GDP	World Bank	996	0.695 (0.541)	0.275 (3.191)
INFL	Annual percentage change in GDP deflator (We set to zero all observations for which inflation takes negative value and apply the inverse hyperbolic since transformation (INFL = Ln(INFL+ $\sqrt{{1 + I N F L}^{2}})$	Author calculations, akin to Arcand et al. (2012)	995	1.179 (0.701)	0 (3.328)
Policy initiatives
Liquidity	Dummy = 1 if a country has provided liquidity support measures, else zero	IMF (2020a, b, c) and World Bank (2020)	1,000	0.933 (0.250)
Prudential	Dummy = 1 if a country has undertaken prudential measures, else zero	As above	1,000	0.939 (0.239)
Borrower	Dummy = 1 if a country has provided borrower support measures, else zero	As above	1,000	0.820 (0.384)
Asset purchase	Dummy = 1 if a country has undertaken asset purchase measures, else zero	As above	1,000	0.468 (0.499)
Policy rate	Dummy = 1 if a country has changed its policy rate, else zero	As above	1,000	0.872 (0.334)
Digital	Dummy = 1 if a country has undertaken measures to support digital activity, else zero	As above	1,000	0.251 (0.434)
Market functioning	Dummy = 1 if a country has undertaken measures to support market functioning, else zero	As above	1,000	0.606 (0.489)
Other controls (Other)
Governance	Estimate of World Bank Governance Indicator based on six areas: Voice and accountability, Political stability, Government effectiveness, Regulatory quality, Rule of law and Control of corruption. We obtain an aggregate value of the indicator using these six areas and classify countries into four quartiles depending on whether the aggregate value is less than or equal to 25th percentile, greater than 25th and upto 50th percentile, greater than 50th and upto 75th percentile and finally, above 75th percentile	World Bank Governance Indicators	999	2.478 (1.119)	1.00 (4.00)
Supervision	Dummy = 1 if bank supervision is with central bank, else zero	Anigner et al. (2019)	1,000	0.506 (0.500)
Interest	Cumulative interest rate cut by the monetary authority/central bank in the past one year	Central bank website	970	−0.462 (1.189)	−12.00 (3.25)
Multiple	Dummy = 1, if the monetary authority/central bank has resorted to multiple interest rate cuts during the past one year, else zero	As above	970	0.539 (0.499)
Legal	Legal origin of the country, according as French, English, German and Others (control category)	La Porta et al. (1998)	1,000	2.214 (0.861)	1.00 (4.00)
Parliamentary	Dummy = 1, if a country has parliamentary type of government, else zero	World Factbook, Central Intelligence Agency	1,000	0.346 (0.476)	0 (1.00)
Presidential	Dummy = 1, if a country has presidential or semi-presidential type of government, else zero	As above	1,000	0.374 (0.484)	0 (1.00)
Others	Dummy = 1, if a country has any type of government which is neither Parliamentary or Presidential (control category)	As above	1,000	0.280 (0.449)	0 (1.00)
Region	Dummy for different regions, based on World Bank classification. These include, East Asia and Pacific (control category), Europe and Central Asia, Latin America and Caribbean, Middle East and Central Asia, North Americas, South Asia and Sub-Saharan Africa	World Bank	1,000	2.661 (1.727)	1.00 (7.00)

Source(s): The author's calculations

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