Definition of variables
| Variables | Source | Description |
|---|---|---|
| 1. Capital structure | ||
| Equity to total assets (ETA) | Bloomberg | Ratio of shareholder equity to total assets*100 |
| 2. Assets structure | ||
| Total Assets (SIZE) | Bloomberg | Logarithm of total assets (USD millions) |
| Net Loans to total assets (NLTA) | Bloomberg | Total net loans to total assets *100 |
| Net Loans to deposit (NLCSTF) | Altunbaş et al. (2007) | Total net loans by divided total deposit |
| Liquid assets to total deposits (LACSTF) | Bloomberg | Ratio of liquid assets to total deposits *100 |
| 3. Cost-efficiency | ||
| Ratio of costs to income (CIR) | Bankscope | Bank costs by divided net income |
| Non-interest expense to average total assets (NIEXPA) | Bankscope | Total non-interest expense by divided average total assets |
| 4. Profitability | ||
| Net Interest Margin (NIM) | Bankscope | Total interest income minus total interest expenses divided by total assets |
| Return on Assets (ROA) | Bloomberg | Ratio of net income to total assets *100 |
| Return on Equity (ROE) | Bloomberg | Ratio of net income to total equity capital *100 |
| Other operating income to assets (OOPINCA) | Bloomberg | Other operating income by divided total assets |
| Variables | Source | Description |
|---|---|---|
| Equity to total assets (ETA) | Bloomberg | Ratio of shareholder equity to total assets*100 |
| Total Assets (SIZE) | Bloomberg | Logarithm of total assets (USD millions) |
| Net Loans to total assets (NLTA) | Bloomberg | Total net loans to total assets *100 |
| Net Loans to deposit (NLCSTF) | Total net loans by divided total deposit | |
| Liquid assets to total deposits (LACSTF) | Bloomberg | Ratio of liquid assets to total deposits *100 |
| Ratio of costs to income (CIR) | Bankscope | Bank costs by divided net income |
| Non-interest expense to average total assets (NIEXPA) | Bankscope | Total non-interest expense by divided average total assets |
| Net Interest Margin (NIM) | Bankscope | Total interest income minus total interest expenses divided by total assets |
| Return on Assets (ROA) | Bloomberg | Ratio of net income to total assets *100 |
| Return on Equity (ROE) | Bloomberg | Ratio of net income to total equity capital *100 |
| Other operating income to assets (OOPINCA) | Bloomberg | Other operating income by divided total assets |
Source(s): Composed by author
Sharing content requires targeting cookies to be enabled. Please update your cookie preferences to use this feature.