Skip to main content

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)
  1. Notes: c, b and aindicate significance at the 1, 5 and 10% levels, respectively