Table 3 Impact of pandemic on bank...

Table 3

Impact of pandemic on bank behavior

	(1)	(2)	(3)	(4)	(5)	(6)
	Dep var = RoA			Dep var = RWA
Gap	0.00009 (0.0009)	0.0004 (0.0009)	0.0003 (0.0009)	−0.006** (0.003)	−0.006** (0.003)	0.008** (0.004)
Islamic	0.0002 (0.005)	0.0002 (0.005)	0.003 (0.017)	−0.116** (0.056)	−0.115** (0.057)	−0.163* (0.085)
IW	0.001 (0.003)	0.0008 (0.003)	−0.029 (0.042)	−0.167*** (0.071)	−0.165** (0.075)	1.061* (0.608)
Gap*Islamic	0.00005 (0.00009)	0.00005 (0.00009)	−0.0001 (0.0009)	−0.002* (0.001)	−0.002* (0.001)	−0.004 (0.003)
Gap*IW	−0.00005 (0.00006)	−0.00002 (0.00006)	0.002 (0.002)	−0.003** (0.001)	−0.004** (0.002)	−0.065** (0.032)
Sq.(Gap)*Islamic			0.185 (1.083)			−2.151 (11.556)
Sq.(Gap)*IW			−2.317 (3.162)			93.226** (44.862)
Size	−0.0006*** (0.0002)	−0.0006*** (0.0002)	−0.0006** (0.0002)	−0.035*** (0.004)	−0.033*** (0.004)	−0.034*** (0.004)
CAP	0.028*** (0.009)	0.027*** (0.009)	0.027*** (0.009)	−0.930*** (0.152)	−0.945*** (0.153)	−0.946*** (0.153)
LTA	0.0009 (0.002)	0.0008 (0.002)	0.0008 (0.002)	0.216*** (0.054)	0.209*** (0.054)	0.208*** (0.054)
LTD	−0.0002 (0.0008)	−0.0002 (0.0008)	−0.0002 (0.0008)	0.010 (0.021)	0.011 (0.021)	0.011 (0.021)
CIR	−0.023*** (0.003)	−0.023*** (0.003)	−0.022*** (0.003)	−0.119** (0.055)	−0.119** (0.056)	−0.120** (0.056)
DIS	−0.0007 (0.001)	0.014 (0.021)	0.014 (0.021)	−0.024 (0.027)	0.095 (0.234)	0.098 (0.235)
GSIB	0.001 (0.0009)	0.001 (0.0009)	0.001 (0.0009)	0.038* (0.020)	0.034* (0.020)	0.034* (0.020)
Ln PCGDP	−0.001 (0.0009)	0.005 (0.006)	0.005 (0.006)	−0.316 (0.200)	0.156 (0.118)	0.156 (0.119)
INFL	0.028 (0.022)	0.028 (0.022)	0.028 (0.022)	0.384 (0.392)	0.356 (0.392)	0.353 (0.393)
Openness	−0.005** (0.002)	−0.011 (0.015)	−0.011 (0.015)	−0.327 (0.259)	−0.246 (0.283)	0.245 (0.284)
Credit	−0.037 (0.029)	−0.026 (0.029)	−0.026 (0.029)	0.493 (0.508)	0.128 (0.161)	−0.127 (0.162)
Interest		−0.002 (0.004)	−0.003 (0.004)		0.025 (0.031)	0.025 (0.032)
Multiple		−0.004 (0.011)	−0.004 (0.011)		0.027 (0.059)	0.026 (0.059)
Supervision		0.031 (0.031)	0.030 (0.032)		−0.110 (0.158)	−0.111 (0.158)
Governance: Q2		0.011* (0.006)	0.011** (0.005)		0.476 (0.647)	0.471 (0.649)
Governance: Q3		0.015 (0.016)	0.070 (0.072)		0.077 (1.015)	0.068 (1.017)
Governance: Q4		0.006 (0.008)	0.006 (0.008)		−0.313 (0.497)	−0.317 (0.498)
Legal_France		−0.053 (0.057)	−0.053 (0.057)		−0.115 (0.403)	−0.111 (0.404)
Legal_English		−0.028 (0.025)	−0.028 (0.025)		−0.296 (0.485)	−0.293 (0.487)
Legal_German		−0.021 (0.019)	−0.021 (0.019)		−0.513 (0.943)	−0.505 (0.946)
Parliamentary		−0.047 (0.051)	−0.047 (0.052)		−0.224 (0.343)	−0.220 (0.385)
Presidential		−0.046 (0.051)	−0.046 (0.051)		−0.321 (0.379)	−0.317 (0.381)
Constant	0.054*** (0.021)	0.004 (0.023)	0.004 (0.023)	3.078** (0.849)	−0.735 (1.204)	−0.733 (1.206)
Gap threshold						0.0003
Country FE	Y	Y	Y	Y	Y	Y
Region FE	Y	Y	Y	Y	Y	Y
Observations	782	765	765	778	761	761
R-sq	0.7113	0.6882	0.6883	0.7913	0.7436	0.7439

	(1)	(2)	(3)	(4)	(5)	(6)
	Dep var = RoA			Dep var = RWA
Gap	0.00009 (0.0009)	0.0004 (0.0009)	0.0003 (0.0009)	−0.006** (0.003)	−0.006** (0.003)	0.008** (0.004)
Islamic	0.0002 (0.005)	0.0002 (0.005)	0.003 (0.017)	−0.116** (0.056)	−0.115** (0.057)	−0.163* (0.085)
IW	0.001 (0.003)	0.0008 (0.003)	−0.029 (0.042)	−0.167*** (0.071)	−0.165** (0.075)	1.061* (0.608)
Gap*Islamic	0.00005 (0.00009)	0.00005 (0.00009)	−0.0001 (0.0009)	−0.002* (0.001)	−0.002* (0.001)	−0.004 (0.003)
Gap*IW	−0.00005 (0.00006)	−0.00002 (0.00006)	0.002 (0.002)	−0.003** (0.001)	−0.004** (0.002)	−0.065** (0.032)
Sq.(Gap)*Islamic			0.185 (1.083)			−2.151 (11.556)
Sq.(Gap)*IW			−2.317 (3.162)			93.226** (44.862)
Size	−0.0006*** (0.0002)	−0.0006*** (0.0002)	−0.0006** (0.0002)	−0.035*** (0.004)	−0.033*** (0.004)	−0.034*** (0.004)
CAP	0.028*** (0.009)	0.027*** (0.009)	0.027*** (0.009)	−0.930*** (0.152)	−0.945*** (0.153)	−0.946*** (0.153)
LTA	0.0009 (0.002)	0.0008 (0.002)	0.0008 (0.002)	0.216*** (0.054)	0.209*** (0.054)	0.208*** (0.054)
LTD	−0.0002 (0.0008)	−0.0002 (0.0008)	−0.0002 (0.0008)	0.010 (0.021)	0.011 (0.021)	0.011 (0.021)
CIR	−0.023*** (0.003)	−0.023*** (0.003)	−0.022*** (0.003)	−0.119** (0.055)	−0.119** (0.056)	−0.120** (0.056)
DIS	−0.0007 (0.001)	0.014 (0.021)	0.014 (0.021)	−0.024 (0.027)	0.095 (0.234)	0.098 (0.235)
GSIB	0.001 (0.0009)	0.001 (0.0009)	0.001 (0.0009)	0.038* (0.020)	0.034* (0.020)	0.034* (0.020)
Ln PCGDP	−0.001 (0.0009)	0.005 (0.006)	0.005 (0.006)	−0.316 (0.200)	0.156 (0.118)	0.156 (0.119)
INFL	0.028 (0.022)	0.028 (0.022)	0.028 (0.022)	0.384 (0.392)	0.356 (0.392)	0.353 (0.393)
Openness	−0.005** (0.002)	−0.011 (0.015)	−0.011 (0.015)	−0.327 (0.259)	−0.246 (0.283)	0.245 (0.284)
Credit	−0.037 (0.029)	−0.026 (0.029)	−0.026 (0.029)	0.493 (0.508)	0.128 (0.161)	−0.127 (0.162)
Interest		−0.002 (0.004)	−0.003 (0.004)		0.025 (0.031)	0.025 (0.032)
Multiple		−0.004 (0.011)	−0.004 (0.011)		0.027 (0.059)	0.026 (0.059)
Supervision		0.031 (0.031)	0.030 (0.032)		−0.110 (0.158)	−0.111 (0.158)
Governance: Q2		0.011* (0.006)	0.011** (0.005)		0.476 (0.647)	0.471 (0.649)
Governance: Q3		0.015 (0.016)	0.070 (0.072)		0.077 (1.015)	0.068 (1.017)
Governance: Q4		0.006 (0.008)	0.006 (0.008)		−0.313 (0.497)	−0.317 (0.498)
Legal_France		−0.053 (0.057)	−0.053 (0.057)		−0.115 (0.403)	−0.111 (0.404)
Legal_English		−0.028 (0.025)	−0.028 (0.025)		−0.296 (0.485)	−0.293 (0.487)
Legal_German		−0.021 (0.019)	−0.021 (0.019)		−0.513 (0.943)	−0.505 (0.946)
Parliamentary		−0.047 (0.051)	−0.047 (0.052)		−0.224 (0.343)	−0.220 (0.385)
Presidential		−0.046 (0.051)	−0.046 (0.051)		−0.321 (0.379)	−0.317 (0.381)
Constant	0.054*** (0.021)	0.004 (0.023)	0.004 (0.023)	3.078** (0.849)	−0.735 (1.204)	−0.733 (1.206)
Gap threshold						0.0003
Country FE	Y	Y	Y	Y	Y	Y
Region FE	Y	Y	Y	Y	Y	Y
Observations	782	765	765	778	761	761
R-sq	0.7113	0.6882	0.6883	0.7913	0.7436	0.7439

Note(s): Robust standard errors in parentheses

***p < 0.01; **p < 0.05; *p < 0.10

Weights are inverse of number of banks in each country

Source(s): The author's calculations

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