Table 11 Description of variables
From: Does competence of central bank governors influence financial stability?
Variable | Indicator name | Long definition | Source |
|---|---|---|---|
LLC | Provisions to nonperforming loans (%) | Provisions to nonperforming loans ratio. | Financial Soundness Indicators Database (fsi.imf.org), International Monetary Fund (IMF) |
CRISIS | Banking crisis dummy (1 = banking crisis, 0 = none) | A banking crisis is defined as systemic if two conditions are met: a. Significant signs of financial distress in the banking system (as indicated by significant bank runs, losses in the banking system, and/or bank liquidations), b. Significant banking policy intervention measures in response to significant losses in the banking system. | Laeven, L. and Valencia, F. (2013), ‘Systemic Banking Crises Database: An Update’, IMF WP/12/163 |
RISK | Bank Z-score | It captures the probability of default of a country’s banking system. Z-score compares the buffer of a country’s banking system (capitalisation and returns) with the volatility of those returns. dated data from Bankscope. | Bankscope, Bureau van Dijk (BvD) |
NPL | Bank nonperforming loans to gross loans (%) | Nonperforming loans to gross loans ratio | Financial Soundness Indicators Database (fsi.imf.org), International Monetary Fund (IMF) |
CAR | Bank regulatory capital to risk-weighted assets (%) | The ratio of bank regulatory capital to risk-weighted assets | Financial Soundness Indicators Database (fsi.imf.org), International Monetary Fund (IMF) |
PE | PE | Public sources mainly: the official Wikipedia page of the governor, online CV or resume of central bank governor, and from central bank websites. | Public sources mainly: the official Wikipedia page of the governor, online CV or resume of central bank governor, and from central bank websites. |
EE | EE | Obtained highest degree from an elite university or institution | Public sources mainly: the official Wikipedia page of the governor, online CV or resume of central bank governor, and from central bank websites |
EA | EA | Obtained foreign education | Public sources mainly: the official Wikipedia page of the governor, online CV or resume of central bank governor, and from central bank websites |
AGE | AGE | Age of the central bank governor, and from central bank websites | Publicly available information |
MALE | Gender: Male | Gender of the central bank governor, and from central bank websites | Publicly available information |
FEMALE | Gender: Female (FM) | Gender of the central bank governor, and from central bank websites | Publicly available information |