The consequence of the credit risk on the financial performance in light of COVID-19: Evidence from Islamic versus conventional banks across MEA region

Future Business Journal

Table 7 Impact of NPLs on FP for the conventional banks for the whole period

Model	Model 2: Impact of NPL on FP for CBs for whole period						Model 3: Impact of NPL on FP for CBs for whole period
	Impact of NPL on ROA for the CBs Fixed effects			Impact of NPL on ROA for CBs Random effects			Impact of NPL on ROE for the CBs Fixed effects			Impact of NPL on ROE for CBs Random effects
	Coefficients	T	Sig	Coefficients	T	Sig	Coefficients	T	Sig	Coefficients	T	Sig
(Constant)	− 1.132	− 1.86	0.063*	− 0.551	− 1.182	0.237	1.7431	0.381	0.703	4.154	1.151	0.250
G.NPL%	− 0.024	− 2.78	0.006**	− 0.033	− 4.87	.000***	− 0.187	− 2.936	0.003**	− 0.255	− 4.830	0.000***
SIZ	0.103	1.97	0.049**	0.008	0.202	0.839	0.384	0.979	0.327	− 0.036	− 0.116	0.908
LD %	− 0.0003	− 4.289	0.000***	− 0.0004	− 6.80	.000***	− 0.002	− 3.537	0.000***	− 0.002	− 5.292	0.000***
EA %	0.037	2.4435	0.015**	0.025	1.977	.048**	− 0.232	− 2.029	0.043**	− 0.321	− 3.283	0.001**
CA %	0.075	5.478	0.000***	0.093	8.527	.000***	0.458	4.462	0.000***	0.559	6.642	0.000***
LLR %	− 0.003	− 3.169	0.002**	− 0.003	− 3.38	.001**	− 0.019	− 2.583	0.010**	− 0.013	− 2.126	0.034**
LA %	0.0014	0.371	0.710	0.007	2.220	.027**	0.047	1.589	0.113	0.079	3.419	0.001**
INF	0.0109	1.531	0.126	0.013	2.209	.027**	0.029	0.548	0.584	0.057	1.291	0.197
UNE	0.0177	1.491	0.136	0.004	0.530	0.596	0.1707	1.915	0.056*	0.068	1.024	0.306
Model summary	Adjusted R Square	0.494		Adjusted R Square	0.228F		Adjusted R Square	0.444		Adjusted R Square	0.124
	F	4.251		F	19.95		F	3.662		F	20.122
	Sig	0.000		Sig	0.000		Sig	0.000		Sig	0.000
Hausman test	Chi sq. 38.919	Prob	0.000				Chi sq. 26.793	Prob	0.001

Model	Model 5: Impact of NPL on FP for IBs for whole period						Model 6: Impact of NPL on FP for IBs for whole period
	Impact of NPL on ROA for the IBs Fixed effects			Impact of NPL on ROA for IBs Random effects			Impact of NPL on ROE for the IBs Fixed effects			Impact of NPL on ROE for IBs Random effects
	Coefficients	T	Sig	Coefficient s	T	Sig	Coefficient s	T	Sig	Coefficients	T	Sig
(Constant)	− 0.485	− 0.334	.739	0.686	0.657	.512	1.789	0.168	.867	15.845	2.057	.042**
G.NPL%	− .151	− 5.35	.000***	− .169	− 7.719	.000***	− .599	− 2.901	.005**	− .812	− 5.026	.000***
SIZ	0.363	3.336	.001**	0.292	3.668	.000***	2.806	3.522	.000***	1.987	3.382	.001**
LD %	− .005	− 0.798	.428	− .009	− 2.198	.030**	− .119	− 2.757	.008**	− .130	− 4.111	.000***
EA %	− 0.063	− 1.169	.247	− .026	− 0.862	.390	− 0.683	− 1.714	.092*	− .379	− 1.722	.088*
CA %	.059	1.553	.126	0.029	1.166	.246	.455	1.614	.111	.012	0.065	.948
LLR %	− 0.001	− 0.91	.363	− 0.002	− 2.332	.0217**	0.013	1.474	.146	− 0.007	− 0.110	.912
LA %	− 0.033	− 2.65	0.010**	− 0.027	− 2.986	.004**	− .325	− 3.571	.000***	− .239	− 3.606	.000***
INF	.086	2.83	.006**	.071	2.922	.004**	1.123	5.065	.000***	1.029	5.717	.000***
UNE	− 0.039	− 1.484	.143	− 0.026	− 1.551	.124	− 0.058	− 0.301	.764	− 0.104	− 0.834	.406
Model summary	Adjusted R Square	0.778		Adjusted R Square	0.668		Adjusted R Square	0.684		Adjusted R Square	0.618
	F	8.699		F	25.17		F	13.253		F	20.39
	Sig	0.000		Sig	0.000		Sig	0.000		Sig	0.000
	Chi sq. 9.359	Prob	0.405				Chi sq. 11.854	Prob	0.222