Table 2 GMM estimation, dependent variable: financial stability
From: Do competition and efficiency lead to bank stability? Evidence from Bangladesh
Variables | (1) | (2) | (3) |
|---|---|---|---|
\({\text{Financial stability}}_{t - 1}\) | 0.486*** (0.036) | 0.461*** (0.054) | 0.491*** (0.057) |
\({\text{Competition }}_{t - 1}\) | 9.504*** (3.546) | 12.145*** (4.679) | 26.105*** (5.810) |
\({\text{Competition }}_{t - 1}^{2}\) | − 9.428*** (3.366) | − 12.235*** (4.539) | − 23.411*** (5.429) |
Efficiencyt−1 | 4.866*** (1.446) | 1.519* (0.896) | |
\({\text{Competition}}_{t - 1} {{ \times Efficiency}}_{t - 1}\). | − 3.619*** (0.877) | ||
Bank sizet−1 | 0.272* (0.155) | 0.199 (0.202) | 0.569** (.231) |
Liquidityt−1 | 0.001 (0.053) | 0.322*** (0.050) | 0.497*** (.043) |
Log(GDP per capita)t−1 | 0.400*** (0.106) | 0.039 (0.183) | − 0.025 (0.168) |
gGDPt−1 | − 0.265***(0.033) | − 0.345*** (0.042) | .502*** (0.061) |
Governancet−1 | 0.097 (0.149) | 0.661*** (0.251) | 0.872*** (0.248) |
Regulationt−1 | 0.223*** (0.039) | 0.087 (0.057) | 005 (.059) |
Constant | − 0.116* (0.062) | 3.547*** (1.067) | 0.742 (1.463) |
Year dummies | Yes | Yes | Yes |
No. of instruments | 28 | 28 | 28 |
AR (2) | 0.78 | 0.98 | 0.82 |
Hansen statistics | 0.17 | 0.19 | 0.48 |
Observations | 210 | 210 | 210 |
No. of banks | 30 | 30 | 30 |