Table A3

Determinants of the excess of NPLs’ excess–summary statistics

SizeVariablesMeanDev. Std.MedianMin.Max.
5 larger groupsTier 1 ratio20.00%14.00%15.00%7.00%93.00%
ROA2.00%1.00%2.00%−1.00%5.00%
Loans growth2.00%12.00%0.00%−63.00%58.00%
Cost-to-Income0.680.170.660.312.07
GDP growth1.00%2.00%1.00%−3.00%3.00%
Size (Ln)16.951.5816.7113.9920.04
Large banksTier 1 ratio16.00%6.00%15.00%6.00%44.00%
ROA2.00%1.00%2.00%−1.00%6.00%
Loans growth4.00%6.00%3.00%−14.00%29.00%
Cost-to-Income0.650.190.620.291.49
GDP growth1.00%2.00%1.00%−3.00%3.00%
Size (Ln)17.130.6317.1415.7618.37
Small banksTier 1 ratio15.00%6.00%14.00%4.00%80.00%
ROA2.00%1.00%2.00%−15.00%14.00%
Loans growth2.00%12.00%2.00%−206.00%36.00%
Cost-to-Income0.710.640.690.2513.48
GDP growth1.00%2.00%1.00%−3.00%4.00%
Size (Ln)14.551.114.6511.1916.45
Mutual banksTier 1 ratio19.00%7.00%17.00%0.00%81.00%
ROA2.00%1.00%2.00%−2.00%6.00%
Loans growth3.00%8.00%2.00%−202.00%77.00%
Cost-to-Income0.690.130.680.23.84
GDP growth1.00%2.00%1.00%−3.00%4.00%
Size (Ln)12.820.9212.8210.3916.3
TotalTier 1 ratio18.00%7.00%16.00%0.00%93.00%
ROA2.00%1.00%2.00%−15.00%14.00%
Loans growth3.00%9.00%2.00%−206.00%77.00%
Cost-to-Income0.690.290.68−0.2013.48
GDP growth1.00%2.00%1.00%−3.00%4.00%
Size (Ln)13.391.5313.1410.3820.05

Note(s):TIER1i,t−1 capital ratio; ROAi,t−1 is the return on asset ratio between profit before taxes and total assets; GLGRi,t−1, i.e. the Gross Loan Growth Rate; Cost-to-Incomei,t−1 is the cost-to-income ratio measured by operating expenses over the intermediation margin; GDP growtht−1 captures the macroeconomic conditions or business cycle for Italy; Sizei,t−1 is the natural logarithm of total assets

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