Table 5 Impact of pandemic on banks...

Table 5

Impact of pandemic on banks across policy initiatives by countries

	Liquidity support	Prudential measure	Borrower support	Asset purchase	Policy rate	Digital	Market functioning
	(1)	(2)	(3)	(4)	(5)	(6)	(7)
Panel A Dep var = RoA
Gap	0.0006 (0.0008)	0.0003 (0.0009)	0.0003 (0.0008)	0.0003 (0.0008)	0.0004 (0.0007)	−0.003 (0.004)	0.002* (0.0005)*
Islamic	−0.0006 (0.005)	−0.001 (0.007)	0.004 (0.003)	.	−0.0006 (0.005)	0.003 (0.005)	−0.004 (0.008)
IW	0.001 (0.003)	0.003 (0.005)	−0.002 (0.003)	.	0.001 (0.003)	−0.003 (0.005)	.
Gap*Islamic	0.0008 (0.00009)	0.00005 (0.0001)	−0.00003 (0.00006)	0.0001 (0.0002)	0.00008 (0.00009)	−0.00001 (0.00009)	0.0002 (0.0002)
Gap*IW	−0.0005 (0.0006)	−0.00006 (0.0001)	−0.00005 (0.00006)	.	−0.00005 (0.00006)	−0.00006 (0.0001)	0.00003 (0.00008)
Bank controls	Y	Y	Y	Y	Y	Y	Y
Country controls	Y	Y	Y	Y	Y	Y	Y
Other controls	Y	Y	Y	Y	Y	Y	Y
Country FE	Y	Y	Y	Y	Y	Y	Y
Region FE	Y	Y	Y	Y	Y	Y	Y
Observations	754	739	667	435	735	195	539
R-sq	0.6151	0.6300	0.6100	0.6092	0.6146	0.8709	0.5957
Panel B Dep var = RWA
Gap	−0.007 (0.029)	−0.017 (0.030)	−0.007 (0.028)	−0.015 (0.030)	−0.008 (0.029)	−0.025 (0.043)	−0.029 (0.028)
Islamic	−0.113* (0.065)	−0.092 (0.084)	−0.195*** (0.051)	.	−0.109* (0.065)	−0.102 (0.071)	−0.133 (0.096)
IW	−0.165** (0.076)	−0.285*** (0.077)	−0.088 (0.059)	.	−0.166** (0.076)	−0.171* (0.093)	.
Gap*Islamic	0.002* (0.001)	0.001 (0.001)	0.003*** (0.001)	−0.0002 (0.0005)	0.002** (0.001)	0.001 (0.001)	0.003 (0.002)
Gap*IW	0.002* (0.001)	0.004*** (0.001)	0.001 (0.001)	.	0.002* (0.001)	0.003 (0.002)	−0.005*** (0.001)
Bank controls	Y	Y	Y	Y	Y	Y	Y
Country controls	Y	Y	Y	Y	Y	Y	Y
Other controls	Y	Y	Y	Y	Y	Y	Y
Country FE	Y	Y	Y	Y	Y	Y	Y
Region FE	Y	Y	Y	Y	Y	Y	Y
Observations	751	735	664	435	731	195	536
R-sq	0.7243	0.7272	0.7270	0.7352	0.7307	0.7291	0.7146

	Liquidity support	Prudential measure	Borrower support	Asset purchase	Policy rate	Digital	Market functioning
	(1)	(2)	(3)	(4)	(5)	(6)	(7)
Panel A Dep var = RoA
Gap	0.0006 (0.0008)	0.0003 (0.0009)	0.0003 (0.0008)	0.0003 (0.0008)	0.0004 (0.0007)	−0.003 (0.004)	0.002** (0.0005)
Islamic	−0.0006 (0.005)	−0.001 (0.007)	0.004 (0.003)	.	−0.0006 (0.005)	0.003 (0.005)	−0.004 (0.008)
IW	0.001 (0.003)	0.003 (0.005)	−0.002 (0.003)	.	0.001 (0.003)	−0.003 (0.005)	.
Gap*Islamic	0.0008 (0.00009)	0.00005 (0.0001)	−0.00003 (0.00006)	0.0001 (0.0002)	0.00008 (0.00009)	−0.00001 (0.00009)	0.0002 (0.0002)
Gap*IW	−0.0005 (0.0006)	−0.00006 (0.0001)	−0.00005 (0.00006)	.	−0.00005 (0.00006)	−0.00006 (0.0001)	0.00003 (0.00008)
Bank controls	Y	Y	Y	Y	Y	Y	Y
Country controls	Y	Y	Y	Y	Y	Y	Y
Other controls	Y	Y	Y	Y	Y	Y	Y
Country FE	Y	Y	Y	Y	Y	Y	Y
Region FE	Y	Y	Y	Y	Y	Y	Y
Observations	754	739	667	435	735	195	539
R-sq	0.6151	0.6300	0.6100	0.6092	0.6146	0.8709	0.5957
Panel B Dep var = RWA
Gap	−0.007 (0.029)	−0.017 (0.030)	−0.007 (0.028)	−0.015 (0.030)	−0.008 (0.029)	−0.025 (0.043)	−0.029 (0.028)
Islamic	−0.113* (0.065)	−0.092 (0.084)	−0.195*** (0.051)	.	−0.109* (0.065)	−0.102 (0.071)	−0.133 (0.096)
IW	−0.165** (0.076)	−0.285*** (0.077)	−0.088 (0.059)	.	−0.166** (0.076)	−0.171* (0.093)	.
Gap*Islamic	0.002* (0.001)	0.001 (0.001)	0.003*** (0.001)	−0.0002 (0.0005)	0.002** (0.001)	0.001 (0.001)	0.003 (0.002)
Gap*IW	0.002* (0.001)	0.004*** (0.001)	0.001 (0.001)	.	0.002* (0.001)	0.003 (0.002)	−0.005*** (0.001)
Bank controls	Y	Y	Y	Y	Y	Y	Y
Country controls	Y	Y	Y	Y	Y	Y	Y
Other controls	Y	Y	Y	Y	Y	Y	Y
Country FE	Y	Y	Y	Y	Y	Y	Y
Region FE	Y	Y	Y	Y	Y	Y	Y
Observations	751	735	664	435	731	195	536
R-sq	0.7243	0.7272	0.7270	0.7352	0.7307	0.7291	0.7146

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

All specifications include the full set of control variables, but these are not included for brevity

Source(s): The author's calculations

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