Figure 1
The diagram presents a conceptual model illustrating the relationship between various independent variables, control variables, and a dependent variable. The independent variables include entry restrictions, activities restrictions, capital adequacy requirement, deposit insurance, supervisory power, and supervisory structure. These variables are analyzed using generalized least squares and a panel data multi-states Markov switching model. The control variables are categorized into country-specific and industry-specific factors. The dependent variable is management quality, extracted from the CAMELS model.Conceptual model