The effect of market power on bank liquidity creation: baseline model
| Dependent variable | Fat liquidity creation (FLC) | Non-fat liquidity creation (NFLC) |
|---|---|---|
| Lag of FLC | 0.3706*** | |
| (5.16) | ||
| Lag of NFLC | 0.1685*** | |
| (3.90) | ||
| LERNER | 1.4364*** | 0.8670*** |
| (3.29) | (6.08) | |
| CAP | −1.6866** | −1.4528*** |
| (−2.11) | (−4.36) | |
| SIZE | −7.0879 | −4.2347* |
| (−1.12) | (−1.79) | |
| NPL | 2.6527*** | 3.0471*** |
| (3.49) | (4.87) | |
| GDPGR | −4.9699*** | −2.6263*** |
| (−4.14) | (−3.51) | |
| RATE | −0.4003*** | −0.2681* |
| (−2.62) | (−1.89) | |
| Constant | 250.8444 | 152.6170** |
| (1.22) | (2.00) | |
| Observations | 192 | 192 |
| Number of groups | 24 | 24 |
| Number of IVs | 20 | 20 |
| AR(1) (p-value) | 0.0142 | 0.0611 |
| AR(2) (p-value) | 0.1685 | 0.1535 |
| Hansen (p-value) | 0.1950 | 0.1129 |
| Dependent variable | Fat liquidity creation (FLC) | Non-fat liquidity creation (NFLC) |
|---|---|---|
| Lag of FLC | 0.3706*** | |
| (5.16) | ||
| Lag of NFLC | 0.1685*** | |
| (3.90) | ||
| LERNER | 1.4364*** | 0.8670*** |
| (3.29) | (6.08) | |
| CAP | −1.6866** | −1.4528*** |
| (−2.11) | (−4.36) | |
| SIZE | −7.0879 | −4.2347* |
| (−1.12) | (−1.79) | |
| NPL | 2.6527*** | 3.0471*** |
| (3.49) | (4.87) | |
| GDPGR | −4.9699*** | −2.6263*** |
| (−4.14) | (−3.51) | |
| RATE | −0.4003*** | −0.2681* |
| (−2.62) | (−1.89) | |
| Constant | 250.8444 | 152.6170** |
| (1.22) | (2.00) | |
| Observations | 192 | 192 |
| Number of groups | 24 | 24 |
| Number of IVs | 20 | 20 |
| AR(1) ( | 0.0142 | 0.0611 |
| AR(2) ( | 0.1685 | 0.1535 |
| Hansen ( | 0.1950 | 0.1129 |
Note(s): significance level (***p < 1%), (**p < 5%), (*p < 10%) and ( ) is t-statistic
Source(s): Authors
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