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Table 3 Dynamic panel estimation of NPLs with Loan Growth

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

Variable 1 2 3
Non-Performing Loans 0.84c (0.02) 0.78c (0.05) 0.76c (0.10)
Log of Bank Assets −0.29c (0.13) −5.96c (3.39) −4.38a (1.82)
Loan Growth 0.01c (0.00) 0.01a (0.00) 0.02a (0.04)
Leverage Ratio −0.25c (0.01) −0.07a (0.03) −0.18a (0.09)
Efficiency Ratio 0.05c (0.01) 0.04a (0.02) 0.23c (0.03)
Rule of Law −2.77c (0.68) −5.09b (2.24) −1.20 (4.41)
GDP growth   −1.04c (0.22) −1.16c (0.26)
Inflation   0.15a (0.10)  
Unemployment    1.51a (0.79)
No of Observations 209 209 209
Sargan Test 21.19 (0.56) 16.42 (0.99) 16.13 (1.00)
AR(1) −2.10 (0.03) −2.46 (0.01) −1.90 (0.05)
AR(2) −1.49 (0.13) −1.26 (0.20) −1.21 (0.22)
  1. Notes: c, b and aindicate significance at the 1, 5 and 10% levels, respectively