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) |