Table 9 Robustness results I

Banking sector-specific variables

Lagged non-performing loan

0.338

0.352

0.446

0.521

0.246

0.245

(0.155)

(0.334)

(0.256)

(0.417)

(0.226)

(0.333)

Profitability

− 0.282*

− 0.341**

− 0.348**

− 0.447***

− 0.231**

− 0.122*

(0.001)

(0.032)

(0.025)

(0.063)

(0.021)

(0.000)

Capital regulation

− 0.132*

− 0.043

− 0.153

− 0.244***

− 0.031

− 0.247

(0.000)

(0.341)

(0.186)

(0.078)

(0.141)

(0.327)

Liquidity

− 0.024

− 0.024

− 0.014**

− 0.013***

− 0.013***

− 0.021**

(0.332)

(0.426)

(0.034)

(0.063)

(0.056)

(0.025)

Inefficiency

0.027

0.014**

0.033**

0.010

0.021**

0.024***

(0.122)

(0.017)

(0.031)

(0.335)

(0.032)

(0.063)

Income diversification

− 0.014

− 0.023***

− 0.025

− 0.023*

− 0.011

− 0.031*

(0.128)

(0.098)

(0.244)

(0.001)

(0.325)

(0.001)

Country and global-level variables

Country risk index

− 0.142*

− 0.221*

− 0.246***

− 0.316*

− 0.142**

− 0.427*

(0.003)

(0.001)

(0.068)

(0.002)

(0.028)

(0.000)

Financial market development

0.043*

0.032

0.034**

0.023

0.215

0.011***

(0.002)

(0.124)

(0.023)

(0.252)

(0.302)

(0.078)

Lending interest rate

0.107**

0.124*

0.113

0.113***

0.021***

0.029

(0.027)

(0.004)

(0.343)

(0.053)

(0.053)

(0.441)

Global risk

0.024***

0.013**

0.033**

0.028***

0.027*

0.033**

(0.077)

(0.035)

(0.023)

(0.053)

(0.001)

(0.027)

TC dummies

YES

YES

YES

YES

YES

YES

FC dummy

YES

YES

YES

YES

YES

YES

Adj.R²

–

–

–

–

0.54

–

CD-test (p value)

–

–

–

–

(0.334)

–

AR (2)

–

–

–

–

–

(0.335)

Hansen-test

–

–

–

–

–

(0.541)

Sargan-test

–

–

–

–

–

(0.438)