# Appendix B. Definitions and Summary statistics (cont.)

|**Variable Name**|**Level**|**Definition**|**Obs#**|**Mean**|**Median**|**Min**|**Max**|**St.**<br>**Dev.**|
|---|---|---|---|---|---|---|---|---|
|Supporting Institutional Framework<br>(0-100)|Country|Supporting Institutional Framework (SIF) is calculated as the weighted sum of scores in this<br>category: Accounting transparency, Client protection (transparency in pricing), Client protection<br>(dispute resolution), Credit bureaus and Policy and practice for financial transactions through agents.<br>Using the Microscope scores in 2010.|41|39.76|35|10|70|14.53|
|Client Protection:<br>Transparency in pricing (0-4)|Country|Sub-categories of Supporting Institutional Framework (SIF).<br>Client protection: Transparency in pricing: “Does the regulatory system protect microfinance<br>borrowers by requiring transparency on interest rates? Do institutions, both regulated and non-<br>regulated, follow these practices?” Scoring: 0= Regulations do not require transparency on interest<br>rates; 1=Regulations are technically in place, but they are not followed or enforced; 2=Regulations<br>are in place, but less than a majority of institutions comply; 3=Regulations are in place and the<br>majority of institutions comply; 4=Regulations are robust and failure to comply is the exception.<br>Using the Microscope scores in 2010.|41|1.80|2|0|4|0.84|
|5<br>Inflation, GDP deflator (annual %)|Country|Inflation as measured by the annual growth rate of the GDP implicit deflator shows the rate of price<br>change in the economy as a whole. The GDP implicit deflator is the ratio of GDP in current local<br>currency to GDP in constant local currency, taking the average from 2007 to the latest of World<br>Development Indicators in the World Bank database.|41|7.68|6.82|1.46|24.74|4.22|
|9<br>GDP growth (annual %)|Country|Annual percentage growth rate of GDP at market prices based on constant local currency. Aggregates<br>are based on constant 2000 U.S. dollars. GDP is the sum of gross value added by all resident<br>producers in the economy plus any product taxes and minus any subsidies not included in the value<br>of the products. It is calculated without making deductions for depreciation of fabricated assets or for<br>depletion and degradation of natural resources taking the average from 2007 to the latest of World<br>Development Indicators in the World Bank database.|41|4.61|4.55|0.51|8.17|1.95|
|Rule of law|Country|Rule of law captures perceptions of the extent to which agents have confidence in and abide by the<br>rules of society, and in particular the quality of contract enforcement, property rights, the police, and<br>the courts, as well as the likelihood of crime and violence derived from the Worldwide Governance<br>Indicators (WGI) in the World Bank database.|41|-0.59|-0.63|-1.58|1.27|0.53|
|Bank overhead costs / Total assets|Country|Accounting value of a bank's overhead costs as a share of its total assets, taking the average from<br>2007 to the latest derived from Financial Development and Structure Dataset in the World Bank<br>database.|41|0.05|0.05|0.01|0.17|0.04|
|Ease of doing business index<br>(1=most business-friendly<br>regulations)|Country|Ease of doing business ranks economies from 1 to 185, with first place being the best. A high ranking<br>(a low numerical rank) means that the regulatory environment is conducive to business operation.<br>The index averages the country's percentile rankings on 10 topics covered in the World Bank's Doing<br>Business. The ranking on each topic is the simple average of the percentile rankings on its component<br>indicators. The ranks in 2010 are used.|41|104.76|112|16|175|39.19|

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