Variable measurements
| Variables | Abbreviation | Formulas |
|---|---|---|
| Dependent variable | ||
| Return on assets | ROA | Net income/total assets |
| Independent variables | ||
| Solvency ratio | SOL | Capital adequacy |
| Liquidity ratio | LIQ | Loan/deposit |
| Moderator variable | ||
| Asset quality | AQ | Loan portfolio |
| Control variables | ||
| Bank SIZE | SIZE | Log TA |
| GDP growth | GDP | Log real GDP per capita |
| Inflation rate | INFL | [(CPIt − CPIt-1)/CPIt − 1] × 100 |
| Variables | Abbreviation | Formulas |
|---|---|---|
| Return on assets | ROA | Net income/total assets |
| Solvency ratio | SOL | Capital adequacy |
| Liquidity ratio | LIQ | Loan/deposit |
| Asset quality | AQ | Loan portfolio |
| Bank SIZE | SIZE | Log TA |
| GDP growth | GDP | Log real GDP per capita |
| Inflation rate | INFL | [(CPIt − CPIt-1)/CPIt − 1] × 100 |
Source(s): Created by authors
Sharing content requires targeting cookies to be enabled. Please update your cookie preferences to use this feature.