Table 3 Descriptive of the variables used in the truncated regressions
Bank specific factors | Â | Description | Expected relationship |
|---|---|---|---|
Ownership | Ownership | Public or private | +/− |
Bank size | Size | Total assets | + |
Organizational variables | |||
Number of branches | N_B |  | +/− |
Management to staff ratio | Staffing | Number of executives over total number of employees | +/− |
Profitability | |||
Return on assets | ROA | Net income over total assets | + |
Return on equity | ROE | Net income over equity | + |
Expense to income ratio | EIR | Total banking expenses over gross banking income | − |
Liquidity risk | |||
Loan to deposit ratio | LDR | Total loans over total deposits | + |
Loans intensity | |||
Loan to asset ratio | LAR | Total loans over total assets | + |
Capitalization | |||
Capital to asset ratio | CAR | Total equity over total assets | + |
Macroeconomic variables | |||
Inflation rate | Inflation |  | − |
Real growth rate | Growth |  | +/− |