Table 2 Information about variables... | Emerald Publishing

Table 2

Information about variables

Variable	Prediction	Definition	Measurement	Data source
LLP		Loan loss provision ratio	Ratio of loan loss provision to total asset for bank i at time t	Bankscope
EBPT	+	Pre-provision and pre-tax earnings	Ratio of earnings before taxes and loan loss provisions divided by total asset	Bankscope
SIZE	+	Bank size	Logarithm of total asset	Bankscope
GDPG	–	Real GDP growth rate	Annual change in real gross domestic product	WDI
CP	–	Bank capital adequacy ratio	Ratio of bank capital to total bank asset	Bankscope
NPL	+	Nonperforming loan ratio	Ratio of nonperforming loan divided by gross loan	Bankscope
LN	+/−	Lerner index (market power). A measure of bank concentration	Measured as [output price – (marginal cost/output price)]	GFDI
CN	+/−	Five-bank asset concentration. A measure of competition	Ratio of the assets of the five largest banks as a share of total commercial bank assets	GFDI
BN	–	Boone indicator. A measure of competition	The elasticity of profit to marginal cost	GFDI
HS	–	H-statistic. A measure of competition	Measured as the elasticity of revenues relative to input prices	GFDI

Variable	Prediction	Definition	Measurement	Data source
LLP		Loan loss provision ratio	Ratio of loan loss provision to total asset for bank i at time t	Bankscope
EBPT	+	Pre-provision and pre-tax earnings	Ratio of earnings before taxes and loan loss provisions divided by total asset	Bankscope
SIZE	+	Bank size	Logarithm of total asset	Bankscope
GDPG	–	Real GDP growth rate	Annual change in real gross domestic product	WDI
CP	–	Bank capital adequacy ratio	Ratio of bank capital to total bank asset	Bankscope
NPL	+	Nonperforming loan ratio	Ratio of nonperforming loan divided by gross loan	Bankscope
LN	+/−	Lerner index (market power). A measure of bank concentration	Measured as [output price – (marginal cost/output price)]	GFDI
CN	+/−	Five-bank asset concentration. A measure of competition	Ratio of the assets of the five largest banks as a share of total commercial bank assets	GFDI
BN	–	Boone indicator. A measure of competition	The elasticity of profit to marginal cost	GFDI
HS	–	H-statistic. A measure of competition	Measured as the elasticity of revenues relative to input prices	GFDI

Source(s): Bankscope and World Bank