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Table 2 Pair-wise correlation matrix of the variables

From: Loan growth and bank solvency: evidence from the Pakistani banking sector

No Variables 1 2 3 4 5 6 7 8 9 10 11
1 Non-performing loans 1.000           
2 Solvency 0.356 (0.000) 1.000          
3 Loan growth −0.23a (0.000) 0.115 (0.095) 1.000         
4 Leverage ratio 0.396a (0.000) 0.739a (0.000) 0.135a (0.048) 1.000        
5 Efficiency ratio 0.416a (0.000) 0.560a (0.000) 0.117 (0.865) 0.575a (0.000) 1.000       
6 Bank assets −0.49a (0.000) −0.56a (0.683) −0.207a (0.002) −0.554a (0.000) −0.580a (0.000) 1.000      
7 Interest income −0.41a (0.000) −0.42a (0.000) −0.238a (0.000) −0.429a (0.000) −0.496a (0.000) −0.904a (0.000) 1.000     
8 Real GDP growth 0.042 (0.530) −0.081 (0.225) −0.130 (0.057) −0.010 (0.873) −0.070 (0.264) −0.043a (0.494) −0.079 (0.215) 1.000    
9 Inflation −0.119 (0.077) 0.072 (0.279) 0.245a (0.00) 0.094 (0.135) 0.088 (0.162) −0.102 (0.103) −0.061 (0.341) −0.70a (0.000) 1.000   
10 Unemployment 0.152a (0.023) −0.054 (0.420) −0.248a (0.000) −0.103 (0.101) −0.095 (0.130) 0.141a (0.025) 0.106 (0.098) 0.518a (0.000) −0.843a (0.000) 1.000  
11 Rule of law 0.051 (0.451) −0.021 (0.749) −0.017 (0.801) 0.058 (0.386) −0.011 (0.862) −0.003 (0.964) 0.012 (0.858) −0.126 (0.058) 0.269a (0.000) 0.041 (0.538) 1.000
  1. Here, (a) indicates the 5% significance level