Table 1. Description of the variables...

Table 1.

Description of the variables

Variables	Symbol	Description
Bank risk
Credit risk	CR	Non-performing loans to total loans.^a
Financial stability (1)	ZSCORE_ROA	Capitalisation plus return on assets over standard deviation of return on assets.^a
Financial stability (2)	ZSCORE_ROE	One plus return on equity over standard deviation of return on equity.^a
Bank-specific factors
Credit policy	GRLO	Loans at time t minus loans at time t − 1.^a
Return on assets	ROA	Profit to total assets.^a
Capitalisation	ETA	Equity to total assets.^a
Dimension of bank	TA	Log of total assets. ^a
Volume of credit market	LTA	Loans to total assets. ^a
Intermediation cost	DL	Deposits to loans. ^a
Volume of intermediation cost	CTA	Cost to total assets. ^a
Controls
Dimension of banks	DYM	Large, medium, small and minor dummies; major used as benchmark group
Timing	TIME	Set of time dummies
Macro regions	MR	Set of region dummies (i.e. 20) included in the model to capture the geographical or spillover effects
Market structure
Monopolistic dummy	MON	Monopolistic market (assuming 1 if at LMAs’ level there is one bank [cooperative or non-cooperative banks], 0 otherwise)
Duopolistic dummy	DUO	Duopolistic market (assuming 2 if at LMAs’ level there are two banks [cooperative or non-cooperative banks or both], 0 otherwise)
Oligopolistic dummy	OLIG	Oligopolistic market (assuming 3 if at LMAs’ level there are three banks [cooperative or non-cooperative banks or both), 0 otherwise)
Competitive dummy	COMP	Competitive market (assuming 4 if at LMAs’ level there are more than three banks [cooperative or non-cooperative banks or both], 0 otherwise)

Variables	Symbol	Description
Bank risk
Credit risk	CR	Non-performing loans to total loans.^a
Financial stability (1)	ZSCORE_ROA	Capitalisation plus return on assets over standard deviation of return on assets.^a
Financial stability (2)	ZSCORE_ROE	One plus return on equity over standard deviation of return on equity.^a
Bank-specific factors
Credit policy	GRLO	Loans at time t minus loans at time t − 1.^a
Return on assets	ROA	Profit to total assets.^a
Capitalisation	ETA	Equity to total assets.^a
Dimension of bank	TA	Log of total assets. ^a
Volume of credit market	LTA	Loans to total assets. ^a
Intermediation cost	DL	Deposits to loans. ^a
Volume of intermediation cost	CTA	Cost to total assets. ^a
Controls
Dimension of banks	DYM	Large, medium, small and minor dummies; major used as benchmark group
Timing	TIME	Set of time dummies
Macro regions	MR	Set of region dummies (i.e. 20) included in the model to capture the geographical or spillover effects
Market structure
Monopolistic dummy	MON	Monopolistic market (assuming 1 if at LMAs’ level there is one bank [cooperative or non-cooperative banks], 0 otherwise)
Duopolistic dummy	DUO	Duopolistic market (assuming 2 if at LMAs’ level there are two banks [cooperative or non-cooperative banks or both], 0 otherwise)
Oligopolistic dummy	OLIG	Oligopolistic market (assuming 3 if at LMAs’ level there are three banks [cooperative or non-cooperative banks or both), 0 otherwise)
Competitive dummy	COMP	Competitive market (assuming 4 if at LMAs’ level there are more than three banks [cooperative or non-cooperative banks or both], 0 otherwise)

Note:

Deposits and loans are those granted to customers

Source: ^aOwn calculations upon BilBank 2000 database from ABI

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