Table III Construction of financial...

Table III

Construction of financial development indices

Principal components/variables
Composite index of banking sector development (BSD)
	Eigenvalues	% variation	% cumulative
PC 1	3.315	0.829	0.829
PC 2	0.520	0.130	0.959
PC 3	0.115	0.029	0.987
PC 4	0.050	0.013	1.000
	PC 1	PC 2	PC 3	PC 4
BAGDP	0.530	−0.198	−0.461	0.684
M3	0.504	−0.422	0.753	−0.005
MBACA	0.423	0.879	0.210	0.068
PRVT	0.535	−0.101	−0.419	−0.727
Composite index of stock market development (SMD)
	Eigenvalues	% variation	% cumulative
PC 1	1.467	0.489	0.489
PC 2	1.234	0.412	0.900
PC 3	0.299	0.100	1.000
	PC 1	PC 2	PC 3
MC	0.765	−0.137	0.629
SMTR	−0.284	0.806	0.520
TVGDP	0.578	0.576	−0.578
Composite index of bond market development (BOND)
	Eigenvalues	% Variation	% Cumulative
PC 1	1.879	0.626	0.626
PC 2	0.800	0.267	0.893
PC 3	0.321	0.107	1.000
	PC 1	PC 2	PC 3
PRBMC	0.571	−0.599	0.562
PBBMC	0.659	−0.075	−0.748
IDS	0.490	0.797	0.352
Composite index of insurance market development (ISD)
	Eigenvalues	% Variation	% Cumulative
PC 1	1.763	0.882	0.882
PC 2	0.237	0.119	1.000
	PC 1	PC 2
NLIFEGDP	0.707	−0.707
LIFEGDP	0.707	0.707
Composite index of overall financial development (FD)
	Eigenvalues	% Variation	% Cumulative
PC 1	4.857	0.405	0.405
PC 2	3.487	0.291	0.695
PC 3	1.200	0.100	0.795
PC 4	0.812	0.068	0.863
PC 5	0.544	0.045	0.908
PC 6	0.451	0.038	0.946
PC 7	0.284	0.024	0.970
PC 8	0.157	0.013	0.983
PC 9	0.110	0.009	0.992
PC 10	0.060	0.005	0.997
PC 11	0.026	0.002	0.999
PC 12	0.013	0.001	1.000

Notes: Individual variables are defined in Table II. The PC1…PCn indicate the principal components

Principal components/variables
Composite index of banking sector development (BSD)
	Eigenvalues	% variation	% cumulative
PC 1	3.315	0.829	0.829
PC 2	0.520	0.130	0.959
PC 3	0.115	0.029	0.987
PC 4	0.050	0.013	1.000
	PC 1	PC 2	PC 3	PC 4
BAGDP	0.530	−0.198	−0.461	0.684
M3	0.504	−0.422	0.753	−0.005
MBACA	0.423	0.879	0.210	0.068
PRVT	0.535	−0.101	−0.419	−0.727
Composite index of stock market development (SMD)
	Eigenvalues	% variation	% cumulative
PC 1	1.467	0.489	0.489
PC 2	1.234	0.412	0.900
PC 3	0.299	0.100	1.000
	PC 1	PC 2	PC 3
MC	0.765	−0.137	0.629
SMTR	−0.284	0.806	0.520
TVGDP	0.578	0.576	−0.578
Composite index of bond market development (BOND)
	Eigenvalues	% Variation	% Cumulative
PC 1	1.879	0.626	0.626
PC 2	0.800	0.267	0.893
PC 3	0.321	0.107	1.000
	PC 1	PC 2	PC 3
PRBMC	0.571	−0.599	0.562
PBBMC	0.659	−0.075	−0.748
IDS	0.490	0.797	0.352
Composite index of insurance market development (ISD)
	Eigenvalues	% Variation	% Cumulative
PC 1	1.763	0.882	0.882
PC 2	0.237	0.119	1.000
	PC 1	PC 2
NLIFEGDP	0.707	−0.707
LIFEGDP	0.707	0.707
Composite index of overall financial development (FD)
	Eigenvalues	% Variation	% Cumulative
PC 1	4.857	0.405	0.405
PC 2	3.487	0.291	0.695
PC 3	1.200	0.100	0.795
PC 4	0.812	0.068	0.863
PC 5	0.544	0.045	0.908
PC 6	0.451	0.038	0.946
PC 7	0.284	0.024	0.970
PC 8	0.157	0.013	0.983
PC 9	0.110	0.009	0.992
PC 10	0.060	0.005	0.997
PC 11	0.026	0.002	0.999
PC 12	0.013	0.001	1.000

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