Table 1 Regressors Notation Definition... | Emerald Publishing

Table 1

Regressors

Notation	Definition	Examples of use	Expected sign
Macroeconomic and market structure variables
GDP	Change in GDP in real terms	Claessens et al. (2001), Havrylchyk and Jurzyk (2011b), Claeys and Vander Vennet (2008), Beltratti and Paladino (2015), Albertazzi and Gambacorta (2009), Dietrich and Wanzenried (2011), Dietrich and Wanzenried (2014), Tan (2016), Saona (2016), Djalilov and Piesse (2016), Banyen and Biekpe (2020)	+
INF	Inflation rate (CPI)	Chen and Liao (2011), Claessens et al. (2001), Claeys and Vander Vennet (2008), Athanasoglou et al. (2008), Beltratti and Paladino (2015), Albertazzi and Gambacorta (2009), Dietrich and Wanzenried (2014), Jara-Bertin et al. (2014), Tan (2016), Saona (2016), Djalilov and Piesse (2016), Du et al. (2018), Banyen and Biekpe (2020)	+
CR5	Concentration ratio; the share of the five biggest banks in the total assets of the banking sector in a country	CR3 - Claeys and Vander Vennet (2008), Dietrich and Wanzenried (2014), Jara-Bertin et al. (2014), Tan (2016), Saona (2016), CR4 - Chen and Liao (2011), CR5 – Kosmidou et al., (2007), Beltratti and Paladino (2015)	+
Bank-level variables
S_LOANS	Loans to customers to total assets (TA)	Madous and de Guevara (2004), Claeys and Vander Vennet (2008), Tan (2016), Saona (2016)	+
D_L	Deposits of customers to loans to customers	Similar to Chen and Liao (2011)	−
CAP	Equity capital to total assets	Claessens et al. (2001), Madous and de Guevara (2004), Athanasoglou et al. (2008), Claeys and Vander Vennet (2008), Havrylchyk and Jurzyk (2011b), Dietrich and Wanzenried (2011), Cull and Martínez Pería (2013), Jara-Bertin et al. (2014), Dietrich and Wanzenried (2014), Tan (2016), Djalilov and Piesse (2016), Ahamed (2017), Ohman and Yazdanfar (2018), Banyen and Biekpe (2020)	−
CRED_GROWTH	Credit growth (n/n−1) in real terms	Beltratti and Paladino (2015)	+
CI	Cost-to-income ratio	Dietrich and Wanzenried (2011, 2014), Tan (2016)
LIQ_A	Liquid assets to deposits and short-term funding	Similar to Chen and Liao (2011), Beltratti and Paladino (2015), Banyen and Biekpe (2020)	−
COR	Cost of risk, defined as impairment charges¹ to total assets, which refers to asset quality	The substitute for NPL due to a limited number of observations; credit risk proxy - Chen and Liao (2011), LLP - Madous and de Guevara (2004), Athanasoglou et al. (2008), Havrylchyk and Jurzyk (2011b), Jara-Bertin et al. (2014), similar to Beltratti and Paladino (2015), Dietrich and Wanzenried (2011)	–
SIZE	ln TA (ln of TA in million EUR)	Athanasoglou et al. (2008), Chen and Liao (2011), Mostak Ahamed (2017), Dietrich and Wanzenried (2014), Tan (2016), Djalilov and Piesse (2016), Ohman and Yazdanfar (2018), Du et al. (2018)	+/−

Notation	Definition	Examples of use	Expected sign
Macroeconomic and market structure variables
GDP	Change in GDP in real terms	Claessens et al. (2001), Havrylchyk and Jurzyk (2011b), Claeys and Vander Vennet (2008), Beltratti and Paladino (2015), Albertazzi and Gambacorta (2009), Dietrich and Wanzenried (2011), Dietrich and Wanzenried (2014), Tan (2016), Saona (2016), Djalilov and Piesse (2016), Banyen and Biekpe (2020)	+
INF	Inflation rate (CPI)	Chen and Liao (2011), Claessens et al. (2001), Claeys and Vander Vennet (2008), Athanasoglou et al. (2008), Beltratti and Paladino (2015), Albertazzi and Gambacorta (2009), Dietrich and Wanzenried (2014), Jara-Bertin et al. (2014), Tan (2016), Saona (2016), Djalilov and Piesse (2016), Du et al. (2018), Banyen and Biekpe (2020)	+
CR5	Concentration ratio; the share of the five biggest banks in the total assets of the banking sector in a country	CR3 - Claeys and Vander Vennet (2008), Dietrich and Wanzenried (2014), Jara-Bertin et al. (2014), Tan (2016), Saona (2016), CR4 - Chen and Liao (2011), CR5 – Kosmidou et al., (2007), Beltratti and Paladino (2015)	+
Bank-level variables
S_LOANS	Loans to customers to total assets (TA)	Madous and de Guevara (2004), Claeys and Vander Vennet (2008), Tan (2016), Saona (2016)	+
D_L	Deposits of customers to loans to customers	Similar to Chen and Liao (2011)	−
CAP	Equity capital to total assets	Claessens et al. (2001), Madous and de Guevara (2004), Athanasoglou et al. (2008), Claeys and Vander Vennet (2008), Havrylchyk and Jurzyk (2011b), Dietrich and Wanzenried (2011), Cull and Martínez Pería (2013), Jara-Bertin et al. (2014), Dietrich and Wanzenried (2014), Tan (2016), Djalilov and Piesse (2016), Ahamed (2017), Ohman and Yazdanfar (2018), Banyen and Biekpe (2020)	−
CRED_GROWTH	Credit growth (n/n−1) in real terms	Beltratti and Paladino (2015)	+
CI	Cost-to-income ratio	Dietrich and Wanzenried (2011, 2014), Tan (2016)
LIQ_A	Liquid assets to deposits and short-term funding	Similar to Chen and Liao (2011), Beltratti and Paladino (2015), Banyen and Biekpe (2020)	−
COR	Cost of risk, defined as impairment charges¹ to total assets, which refers to asset quality	The substitute for NPL due to a limited number of observations; credit risk proxy - Chen and Liao (2011), LLP - Madous and de Guevara (2004), Athanasoglou et al. (2008), Havrylchyk and Jurzyk (2011b), Jara-Bertin et al. (2014), similar to Beltratti and Paladino (2015), Dietrich and Wanzenried (2011)	–
SIZE	ln TA (ln of TA in million EUR)	Athanasoglou et al. (2008), Chen and Liao (2011), Mostak Ahamed (2017), Dietrich and Wanzenried (2014), Tan (2016), Djalilov and Piesse (2016), Ohman and Yazdanfar (2018), Du et al. (2018)	+/−

Note(s): ¹Impairment charges reflect, in profit and loss accounts, the cost of allowances (reserves) for non-performing loans and other impaired assets. These names are used under the framework of IAS 39