Table 5. The impact of EPU on the... | Emerald Publishing

Table 5.

The impact of EPU on the relations of inflation and Chinese banks’ loan price

	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	−0.010***	0.001	−0.010***	0.001	−0.019***	0.002	−0.033***	0.002	−0.034***	0.003
c.Inflation	0.897***	0.071	0.979***	0.071	0.674***	0.138	0.731***	0.148	0.694***	0.162
c.Inflation × c.EPU	0.003***	0.000	0.003***	0.000	0.006***	0.002	0.007***	0.002	0.006**	0.002
Interest expense to liabilities	2.675***	0.153	2.674***	0.155	2.685***	0.156	2.670***	0.159	2.667***	0.162
Non-interest expenses to assets	−0.222	0.340	−0.221	0.393	0.160	0.313	0.422	0.350	0.141	0.381
LLP to gross loans	0.514***	0.134	0.550***	0.141	0.455***	0.155	0.356*	0.187	0.405**	0.190
Equity to assets	0.004	0.029	0.011	0.031	0.005	0.032	−0.013	0.036	−0.007	0.037
Loan to deposits	−0.005	0.003	−0.006	0.004	−0.006	0.003	−0.006	0.004	−0.007*	0.004
Bank size	0.965***	0.226	1.131***	0.233	0.924**	0.354	0.766*	0.376	0.839**	0.383
GDP growth	−0.126*	0.063	−0.077	0.054	−0.056	0.115	−0.332***	0.097	−0.315**	0.114
Constant	−6.364**	2.768	−8.477***	2.749	−6.727	4.356	−3.098	4.280	−3.751	4.416
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	−0.010***	0.001	−0.010***	0.001	−0.019***	0.002	−0.033***	0.002	−0.034***	0.003
c.Inflation	0.897***	0.071	0.979***	0.071	0.674***	0.138	0.731***	0.148	0.694***	0.162
c.Inflation × c.EPU	0.003***	0.000	0.003***	0.000	0.006***	0.002	0.007***	0.002	0.006**	0.002
Interest expense to liabilities	2.675***	0.153	2.674***	0.155	2.685***	0.156	2.670***	0.159	2.667***	0.162
Non-interest expenses to assets	−0.222	0.340	−0.221	0.393	0.160	0.313	0.422	0.350	0.141	0.381
LLP to gross loans	0.514***	0.134	0.550***	0.141	0.455***	0.155	0.356*	0.187	0.405**	0.190
Equity to assets	0.004	0.029	0.011	0.031	0.005	0.032	−0.013	0.036	−0.007	0.037
Loan to deposits	−0.005	0.003	−0.006	0.004	−0.006	0.003	−0.006	0.004	−0.007*	0.004
Bank size	0.965***	0.226	1.131***	0.233	0.924**	0.354	0.766*	0.376	0.839**	0.383
GDP growth	−0.126*	0.063	−0.077	0.054	−0.056	0.115	−0.332***	0.097	−0.315**	0.114
Constant	−6.364**	2.768	−8.477***	2.749	−6.727	4.356	−3.098	4.280	−3.751	4.416
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