Table 2 Description of Variables
From: Determinant of credit risk of Islamic banks in Pakistan
S. No | Name of variables | Proxy for variables | Sign | References |
|---|---|---|---|---|
| Â | Dependent | Variable | Â | Â |
1 | Credit risk | (Non-performing loans/total loans) * 100 | CR | Â |
| Â | Independent | Variables | Â | Â |
2 | Gross domestic product | Log of (Consumption + Govt. spendings + Investments + Net Exports) | GDP | Wiryono and Effendi [18] |
3 | Inflation | [(Current CPI – initial CPI)/initial CPI] * 100 | INF | Priyadi et al. [16] |
4 | Growth in the interest rate | (Current year rate – Previous year rate)/current year rate | INT | Kasana and Naveed [10] |
5 | Size | Logarithm of total assets | S | İncekara and Çetinkaya [8] |
6 | Return on assets | Net profit/total assets | ROA | Shah et al. (2021) |
7 | Loan loss provision | (Loan loss provision/total loan) * 100 | LLP | Al-Wesabi and Ahmad [4] |
8 | Capital adequacy ratio | (Capital/risk weighted assets) * 100 | CAR | Alzoubi and Obeidat [5] |
9 | Asset quality | (Total loan/total assets) * 100 | AQ | Ekinci and Poyraz [7] |