Table 4. The impact of EPU and inflation... | Emerald Publishing

Table 4.

The impact of EPU and inflation on bank loan pricing in China

	China’s EPU						Global EPU
	Med EPU SCMP		Mean EPU SCMP		Med EPU mainland		Global med EPU		Global mean EPU
	(1)		(2)		(3)		(4)		(5)
EPU measures	Coef.	Std. err	Coef.	Std. err	Coef.	Std. err	Coef.	Std. err	Coef.	Std. err
c.EPU	−0.009***	0.001	−0.009***	0.002	−0.019***	0.002	−0.033***	0.004	−0.035***	0.004
c.Inflation	0.346**	0.134	0.318**	0.127	0.295*	0.158	0.384**	0.154	0.398**	0.150
Interest expense to liabilities	2.684***	0.149	2.685***	0.150	2.689***	0.153	2.672***	0.159	2.668***	0.162
Non-interest expenses to assets	−0.047	0.414	0.086	0.508	0.265	0.327	0.481	0.343	0.190	0.373
LLP to gross loans	0.605***	0.157	0.646***	0.170	0.536***	0.184	0.392*	0.205	0.439**	0.205
Equity to assets	−0.012	0.028	−0.011	0.029	−0.007	0.029	−0.021	0.034	−0.015	0.035
Loan to deposits	−0.006	0.004	−0.007	0.004	−0.007	0.004	−0.007	0.004	−0.007*	0.004
Bank size	0.500	0.316	0.544	0.359	0.574	0.375	0.506	0.368	0.599	0.375
GDP growth	−0.242**	0.093	−0.199*	0.096	−0.195**	0.087	−0.434***	0.078	−0.412***	0.090
Constant	−0.843	3.795	−1.747	4.116	−2.197	4.345	0.322	4.093	−0.592	4.194
Observations	1,625		1,625		1,625		1,625		1,625

	China’s EPU						Global EPU
	Med EPU SCMP		Mean EPU SCMP		Med EPU mainland		Global med EPU		Global mean EPU
	(1)		(2)		(3)		(4)		(5)
EPU measures	Coef.	Std. err	Coef.	Std. err	Coef.	Std. err	Coef.	Std. err	Coef.	Std. err
c.EPU	−0.009***	0.001	−0.009***	0.002	−0.019***	0.002	−0.033***	0.004	−0.035***	0.004
c.Inflation	0.346**	0.134	0.318**	0.127	0.295*	0.158	0.384**	0.154	0.398**	0.150
Interest expense to liabilities	2.684***	0.149	2.685***	0.150	2.689***	0.153	2.672***	0.159	2.668***	0.162
Non-interest expenses to assets	−0.047	0.414	0.086	0.508	0.265	0.327	0.481	0.343	0.190	0.373
LLP to gross loans	0.605***	0.157	0.646***	0.170	0.536***	0.184	0.392*	0.205	0.439**	0.205
Equity to assets	−0.012	0.028	−0.011	0.029	−0.007	0.029	−0.021	0.034	−0.015	0.035
Loan to deposits	−0.006	0.004	−0.007	0.004	−0.007	0.004	−0.007	0.004	−0.007*	0.004
Bank size	0.500	0.316	0.544	0.359	0.574	0.375	0.506	0.368	0.599	0.375
GDP growth	−0.242**	0.093	−0.199*	0.096	−0.195**	0.087	−0.434***	0.078	−0.412***	0.090
Constant	−0.843	3.795	−1.747	4.116	−2.197	4.345	0.322	4.093	−0.592	4.194
Observations	1,625		1,625		1,625		1,625		1,625

Note(s):

***, ** and *indicate 1, 5 and 10% levels of significance, respectively

Source(s): Authors’ own work