Table 8 Bank relative efficiency determinants (for all banks jointly and separately for categories of banks with respect to their size)
From: Size matters: analyzing bank profitability and efficiency under the Basel III framework
EFF—dep. var | All banks | Large and medium banks only | Small banks only | ||||||
|---|---|---|---|---|---|---|---|---|---|
(1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) | |
VARIABLES | EFF_All_banks_baseline | EFF_All_banks_EMU | EFF_All_banks_EU15 | EFF_L&M_banks_baseline | EFF_L&M_banks_EMU | EFF_L&M_banks_EU15 | EFF_Small_banks_baseline | EFF_Small_banks_EMU | EFF_Small_banks_EU15 |
L.EFF_all_banks | 0.281*** | 0.292*** | 0.283*** | ||||||
[15.737] | [14.883] | [16.022] | |||||||
(0.018) | (0.020) | (0.018) | |||||||
L.EFF_L&M_banks | 0.336*** | 0.335*** | 0.336*** | ||||||
[11.900] | [11.713] | [11.900] | |||||||
(0.028) | (0.029) | (0.028) | |||||||
L.EFF_small_banks | 0.350*** | 0.273*** | 0.271*** | ||||||
[8.021] | [5.713] | [5.744] | |||||||
(0.044) | (0.048) | (0.047) | |||||||
ROA | 0.420*** | 0.423*** | 0.429*** | 0.719*** | 0.722*** | 0.719*** | 0.612*** | 0.552*** | 0.572*** |
[4.145] | [2.651] | [4.127] | [3.774] | [3.757] | [3.775] | [3.510] | [3.373] | [3.356] | |
(0.101) | (0.160) | (0.104) | (0.190) | (0.192) | (0.190) | (0.174) | (0.164) | (0.170) | |
LIQ | 0.059*** | 0.053** | 0.056*** | 0.029 | 0.023 | 0.029 | 0.032 | 0.095*** | 0.095*** |
[3.827] | [2.133] | [3.743] | [1.310] | [0.994] | [1.310] | [0.966] | [2.950] | [2.884] | |
(0.015) | (0.025) | (0.015) | (0.022) | (0.023) | (0.022) | (0.033) | (0.032) | (0.033) | |
LTR | − 0.002* | − 0.002 | − 0.002 | − 0.001 | − 0.001 | − 0.001 | 0.000 | 0.000 | 0.000 |
[− 1.647] | [− 1.296] | [− 1.619] | [− 0.642] | [− 0.611] | [− 0.642] | [0.101] | [0.177] | [0.037] | |
(0.001) | (0.002) | (0.001) | (0.001) | (0.001) | (0.001) | (0.003) | (0.003) | (0.003) | |
GDPG | 0.001 | 0.001 | 0.001 | 0.002*** | 0.002*** | 0.002*** | 0.003 | 0.003* | 0.003 |
[1.546] | [1.317] | [1.508] | [2.950] | [2.926] | [2.950] | [1.591] | [1.654] | [1.538] | |
(0.001) | (0.001) | (0.001) | (0.001) | (0.001) | (0.001) | (0.002) | (0.002) | (0.002) | |
LHHI | 0.004 | 0.003 | 0.004 | 0.026 | 0.026 | 0.026 | − 0.043 | − 0.028 | − 0.024 |
[0.266] | [0.115] | [0.252] | [1.559] | [1.547] | [1.558] | [− 1.277] | [− 0.811] | [− 0.686] | |
(0.014) | (0.027) | (0.014) | (0.017) | (0.017) | (0.017) | (0.034) | (0.034) | (0.034) | |
HICP | 0.001 | 0.001 | 0.001 | 0.002*** | 0.002** | 0.002*** | − 0.000 | 0.001 | 0.001 |
[1.361] | [1.163] | [1.386] | [2.581] | [2.568] | [2.581] | [− 0.279] | [0.853] | [0.919] | |
(0.001) | (0.001) | (0.001) | (0.001) | (0.001) | (0.001) | (0.001) | (0.001) | (0.002) | |
LBSIZE | − 0.001 | − 0.000 | − 0.001 | 0.007* | 0.007 | 0.007* | 0.004 | 0.008 | 0.009 |
[− 0.662] | [− 0.073] | [− 0.532] | [1.782] | [1.552] | [1.781] | [0.388] | [0.625] | [0.738] | |
(0.002) | (0.006) | (0.002) | (0.004) | (0.004) | (0.004) | (0.009) | (0.013) | (0.013) | |
REG_DUMMY | 0.584*** | 0.191*** | 0.094*** | 0.117*** | 0.198*** | 0.197*** | − 0.070*** | − 0.061*** | − 0.064*** |
[3.951] | [15.201] | [18.343] | [12.253] | [16.535] | [16.427] | [− 4.527] | [− 3.241] | [− 3.290] | |
(0.148) | (0.013) | (0.005) | (0.010) | (0.012) | (0.012) | (0.016) | (0.019) | (0.019) | |
(0.015) | (0.187) | (0.015) | (0.022) | (0.191) | (0.022) | (0.030) | (0.042) | (0.029) | |
1.EMU | 0.382 | − 0.155 | 0.057*** | ||||||
[1.815] | [− 0.802] | [1.479] | |||||||
(0.211) | (0.194) | (0.039) | |||||||
1.EU15 | 0.487*** | − 0.169 | 0.425 | ||||||
[3.346] | [− 0.890] | [1.187] | |||||||
(0.146) | (0.190) | (0.358) | |||||||
Nb. of banks [id] | 433 | 433 | 433 | 281 | 281 | 281 | 152 | 152 | 152 |
Nb. of observations | 3888 | 3888 | 3888 | 2525 | 2525 | 2525 | 1363 | 1363 | 1363 |
Hansen test [p-value] | 0.09 | 0.12 | 0.12 | 0.15 | 0.15 | 0.14 | 0.61 | 0.64 | 0.61 |
AR1 test [p-value] | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
AR2 test [p-value] | 0.15 | 0.19 | 0.16 | 0.75 | 0.76 | 0.75 | 0.56 | 0.95 | 0.96 |