Table 4 Dynamic panel estimation of solvency and loan growth
From: Loan growth and bank solvency: evidence from the Pakistani banking sector
Variables | 1 | 2 | 3 |
|---|---|---|---|
Solvency | 0.71c (0.02) | 0.72c (0.01) | 0.75c (0.02) |
Log of Bank Assets | 5.10c (0.76) | 3.27b (1.06) | 2.91c (0.72) |
Loan Growth | −0.08c (0.01) | −0.07c (0.00) | −0.06c (0.00) |
Efficiency Ratio | −0.05c (0.01) | −0.03a (0.01) | −0.05b (0.02) |
Rule of Law | 10.54c (1.19) | 16.23c (1.49) | |
GDP growth | 1.04c (0.09) | ||
No of Observations | 209 | 209 | 209 |
Sargan Test | 24.04 (0.97) | 18.53 (0.99) | 24.09 (0.97) |
AR(1) | −2.10 (0.03) | −2.15 (0.03) | −2.07 (0.03) |
AR(2) | −0.38 (0.70) | 0.16 (0.87) | 0.09 (0.92) |