Table 1 Main variables
From: Does abnormal lending behavior increase bank riskiness? Evidence from Turkey
Variables | Symbols | Description and calculation |
|---|---|---|
Dependent variable | ||
 Non-performing loan | NPLs | NPLs characterize the defaulting loan’s percentage (overdue of payment by the debtor for more than 90 days) as well as it direct how about loan’s quality portfolio of a financial institution. NPLs ratio frequently used for a proxy of assets quality of portfolios. |
 Solvency ratio | SOL | Solvency calculated as the ratio of total capital/risk-weighted assets. It describes the strength of a loaning institution. |
Independent variables | ||
 Loan growth | LG | The change of current year and previous year loan’s percentile express the loan growth. |
 Size | TA | Log of total assets represents the size. |
 Leverage ratio | LEV | Leverage ratio measured by total equity to total assets, higher ration direct us the well capitalized a financial institution. |
 Efficiency ratio | EFF | Efficiency ratio measured by non-interest expenses to total assets. Non-interest expenses include all time of salary payments, provision of losses, professional services fee, taxes and property leases. |
Macro-level variables | ||
 GDP growth rate | GDP | GDP growth rate collected from world bank indicators. |
 Inflation rate | INF | Inflation rate describes the consumer price indexes. |
 Unemployment rate | UNEMPL | Collected from world bank indicators |
 Rule of law | ROL | Collected from world corporate governance index which published by the world bank. |
 Political stability | POLST | Collected from world corporate governance index which published by the world bank. |