Table 2 Pair-wise correlation matrix of the variables

1

Non-performing loans

1.000

2

Solvency

0.356 (0.000)

1.000

3

Loan growth

−0.23^a (0.000)

0.115 (0.095)

1.000

4

Leverage ratio

0.396^a (0.000)

0.739^a (0.000)

0.135^a (0.048)

1.000

5

Efficiency ratio

0.416^a (0.000)

0.560^a (0.000)

0.117 (0.865)

0.575^a (0.000)

1.000

6

Bank assets

−0.49^a (0.000)

−0.56^a (0.683)

−0.207^a (0.002)

−0.554^a (0.000)

−0.580^a (0.000)

1.000

7

Interest income

−0.41^a (0.000)

−0.42^a (0.000)

−0.238^a (0.000)

−0.429^a (0.000)

−0.496^a (0.000)

−0.904^a (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)

−0.043^a (0.494)

−0.079 (0.215)

1.000

9

Inflation

−0.119 (0.077)

0.072 (0.279)

0.245^a (0.00)

0.094 (0.135)

0.088 (0.162)

−0.102 (0.103)

−0.061 (0.341)

−0.70^a (0.000)

1.000

10

Unemployment

0.152^a (0.023)

−0.054 (0.420)

−0.248^a (0.000)

−0.103 (0.101)

−0.095 (0.130)

0.141^a (0.025)

0.106 (0.098)

0.518^a (0.000)

−0.843^a (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)

0.269^a (0.000)

0.041 (0.538)

1.000