Table 3 Pair-wise correlation analysis of the variables

1

Non-performing loan

1.000

2

Solvency ratio

0.2720^a (0.0000)

1.000

3

Loan growth

−0.1464 (0.0525)

− 0.1025 (0.2575)

1.000

4

Log of assets

−0.369^a (0.000)

− 0.441^a (0.000)

− 0.104 (0.141)

1.000

5

Leverage ratio

0.243^a (0.000)

0.384^a (0.000)

−0.081 (0.254)

−0.552^a (0.000)

1.000

6

Efficiency ratio

0.378^a (0.000)

0.280^a (0.003)

0.0285 (0.68)

−0.349^a (0.000)

0.126^a (0.039)

1.000

7

Log of GDP growth rate

−0.0477 (0.296)

−0.043 (0.386)

− 0.016 (0.416)

0.1213^a (0.047)

− 0.087 (0.152)

−0.029 (0.215)

1.000

8

Inflation rate

0.055 (0.393)

0.078 (0.324)

−0.082 (0.235)

−0.032 (0.60)

0.041 (0.497)

0.016 (0.284)

−0.554^a (0.000)

1.000

9

Unemployment rate

0.073 (0.260)

0.056 (0.475)

0.050 (0.463)

−0.195^a (0.00)

0.127^a (0.036)

0.045 (0.260)

−0.53^a (0.000)

0.017 (0.738)

1.000

10

Rule of Law

0.084 (0.197)

0.068 (0.389)

0.038 (0.577)

−0.199^a (0.001)

0.126^a (0.03)

0.057 (0.35)

−0.396^a (0.00)

0.347^a (0.000)

0.834^a (0.000)

1.000

11

Political stability

−0.098 (0.13)

−0.107 (0.177)

0.017 (0.801)

0.18^a (0.003)

−0.139^a (0.0225)

−0.050 (0.414)

0.347^a (0.000)

−0.426^a (0.000)

− 0.321^a (0.000)

−0.113^a (0.000)