Table 1 Variables and definitions
Variables | Proxies | Definition/calculation | Source |
|---|---|---|---|
Dependent variable | |||
Financial performance (FP) | Return on assets (ROA) | Operating profit/average total assets | Annual reports and Asian Banker website |
Return on equity (ROE) | Net profit/average total equity | ||
Independent variable | |||
Credit Risk (CR) or G.NPL | Gross nonperforming loans (NPLs) ratio | Nonperforming loans/total loans | Annual reports and Asian Banker website |
Moderating variable | |||
Pandemic | COVID-19 pandemic | Number of total cases by country Number of total deaths by country | Our World in Data |
Control variables for microeconomic level | |||
LD | Bank liquidity | Loan to deposit % | Annual reports and Asian Banker website |
EA | Financial leverage | Equity to assets % | |
CA | Stability | Capital adequacy ratio total | |
LLR | Quality of loans | Loan loss reserves to gross NPLs % | |
LA | Liquidity | Liquid assets to total deposits and borrowings % | |
SIZ | Size of bank | Natural logarithm of total assets | |
Control variables for macroeconomic level | |||
UNE | Unemployment | Unemployment, total (% of total labor force) (modeled ILO estimate) | World bank database |
INF | Inflation | Annual rate of consumer price index inflation | |