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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