Table 7. The individual and joint... | Emerald Publishing

Table 7.

The individual and joint effects of local and global EPU and inflation on loan price by bank types

	The big four and joint stock commercial banks								City commercial banks
	China’s EPU		Global EPU		China’s EPU		Global EPU		China’s EPU		Global EPU		China’s EPU		Global EPU
	Med EPU SCMP		Global med EPU		Med EPU SCMP		Global med EPU		Med EPU SCMP		Global med EPU		Med EPU SCMP		Global med EPU
	(1)		(2)		(3)		(4)		(5)		(6)		(7)		(8)
EPU measures	Coef.	Std. err	Coef.	Std. err	Coef.	Std. err	Coef.	Std. err	Coef.	Std. err	Coef.	Std. err	Coef.	Std. err	Coef.	Std. err
c.EPU	−0.005***	0.001	−0.019***	0.002	−0.005***	0.000	−0.018***	0.001	−0.003***	0.001	−0.010***	0.003	−0.004***	0.001	−0.011***	0.003
c.Inflation	0.159**	0.060	0.194***	0.063	0.553***	0.086	0.400***	0.084	0.203**	0.088	0.191**	0.081	0.357***	0.094	0.226***	0.044
c.Inflation × c.EPU					0.002***	0.000	0.003***	0.001					0.001*	0.000	0.001	0.001
Interest expense to liabilities	2.198***	0.301	2.083***	0.344	2.126***	0.334	2.083***	0.369	2.649***	0.140	2.645***	0.141	2.649***	0.141	2.645***	0.142
Non-interest expenses to assets	1.177**	0.411	1.993***	0.528	0.942**	0.390	1.884***	0.507	1.365***	0.213	1.615***	0.178	1.249***	0.236	1.599***	0.191
LLP to gross loans	0.493**	0.215	0.266	0.261	0.438*	0.217	0.279	0.252	0.452***	0.119	0.383***	0.125	0.435***	0.116	0.379***	0.125
Equity to assets	−0.060	0.043	−0.081	0.053	−0.035	0.038	−0.071	0.050	0.039	0.028	0.040	0.030	0.039	0.029	0.040	0.030
Loan to deposits	−0.001	0.001	−0.001	0.001	−0.001	0.001	−0.000	0.001	−0.120***	0.014	−0.126***	0.014	−0.115***	0.017	−0.125***	0.015
Bank size	0.632*	0.326	0.868**	0.331	0.891***	0.290	0.980***	0.315	0.568***	0.161	0.530***	0.171	0.698***	0.139	0.555***	0.153
GDP growth	−0.082	0.107	−0.183	0.113	−0.002	0.110	−0.122	0.116	−0.063	0.048	−0.110	0.069	−0.043	0.046	−0.103	0.070
Constant	−6.070	5.106	−8.630	5.270	−9.820*	4.746	−10.556*	5.110	3.214	1.916	4.105**	1.689	1.600	1.954	3.765**	1.450
Observations	280		280		280		280		1,345		1,345		1,345		1,345

	The big four and joint stock commercial banks								City commercial banks
	China’s EPU		Global EPU		China’s EPU		Global EPU		China’s EPU		Global EPU		China’s EPU		Global EPU
	Med EPU SCMP		Global med EPU		Med EPU SCMP		Global med EPU		Med EPU SCMP		Global med EPU		Med EPU SCMP		Global med EPU
	(1)		(2)		(3)		(4)		(5)		(6)		(7)		(8)
EPU measures	Coef.	Std. err	Coef.	Std. err	Coef.	Std. err	Coef.	Std. err	Coef.	Std. err	Coef.	Std. err	Coef.	Std. err	Coef.	Std. err
c.EPU	−0.005***	0.001	−0.019***	0.002	−0.005***	0.000	−0.018***	0.001	−0.003***	0.001	−0.010***	0.003	−0.004***	0.001	−0.011***	0.003
c.Inflation	0.159**	0.060	0.194***	0.063	0.553***	0.086	0.400***	0.084	0.203**	0.088	0.191**	0.081	0.357***	0.094	0.226***	0.044
c.Inflation × c.EPU					0.002***	0.000	0.003***	0.001					0.001*	0.000	0.001	0.001
Interest expense to liabilities	2.198***	0.301	2.083***	0.344	2.126***	0.334	2.083***	0.369	2.649***	0.140	2.645***	0.141	2.649***	0.141	2.645***	0.142
Non-interest expenses to assets	1.177**	0.411	1.993***	0.528	0.942**	0.390	1.884***	0.507	1.365***	0.213	1.615***	0.178	1.249***	0.236	1.599***	0.191
LLP to gross loans	0.493**	0.215	0.266	0.261	0.438*	0.217	0.279	0.252	0.452***	0.119	0.383***	0.125	0.435***	0.116	0.379***	0.125
Equity to assets	−0.060	0.043	−0.081	0.053	−0.035	0.038	−0.071	0.050	0.039	0.028	0.040	0.030	0.039	0.029	0.040	0.030
Loan to deposits	−0.001	0.001	−0.001	0.001	−0.001	0.001	−0.000	0.001	−0.120***	0.014	−0.126***	0.014	−0.115***	0.017	−0.125***	0.015
Bank size	0.632*	0.326	0.868**	0.331	0.891***	0.290	0.980***	0.315	0.568***	0.161	0.530***	0.171	0.698***	0.139	0.555***	0.153
GDP growth	−0.082	0.107	−0.183	0.113	−0.002	0.110	−0.122	0.116	−0.063	0.048	−0.110	0.069	−0.043	0.046	−0.103	0.070
Constant	−6.070	5.106	−8.630	5.270	−9.820*	4.746	−10.556*	5.110	3.214	1.916	4.105**	1.689	1.600	1.954	3.765**	1.450
Observations	280		280		280		280		1,345		1,345		1,345		1,345

Note(s):

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

Source(s): Authors’ own work