Financial Regulation and Development Table 1: (continued)

|Variables|(1)<br>Deposits|(2)<br>Lending|(3)<br>NBE bills|(4)<br>Safe assets|
|---|---|---|---|---|
||Big Banks|and Post-Policy|||
|Big Bank _×_ Quarter 5|396.8***|57.45|658.0***|792.3***|
||(143.1)|(137.3)|(94.03)|(137.8)|
|Big Bank _×_ Quarter 6|583.8***|102.4|807.1***|589.8**|
||(193.1)|(201.6)|(128.5)|(229.0)|
|Big Bank _×_ Quarter 7|600.8***|499.2**|973.5***|554.5***|
||(217.3)|(217.2)|(137.7)|(159.7)|
|Big Bank _×_ Quarter 8|409.2**|705.8***|1,094***|461.2***|
||(208.0)|(203.3)|(133.7)|(155.1)|
|Big Bank _×_ Quarter 9|337.9**|552.6***|1,091***|482.9***|
||(137.0)|(138.7)|(94.22)|(130.4)|
|Big Bank _×_ Quarter 10|481.3**|392.8*|1,161***|57.88|
||(191.6)|(203.2)|(129.7)|(234.9)|
|Big Bank _×_ Quarter 11|468.7**|568.8***|1,270***|469.2***|
||(200.4)|(210.8)|(132.5)|(147.6)|
|Big Bank _×_ Quarter 12|535.3**|757.0***|1,372***|634.6***|
||(214.8)|(202.5)|(131.6)|(154.5)|
|Big Bank _×_ Quarter 13|556.5***|677.2***|1,385***|558.7***|
||(172.4)|(155.0)|(95.46)|(121.8)|
|Quarter FE|Yes|Yes|Yes|Yes|
|Bank FE|Yes|Yes|Yes|Yes|
|Bank _×_ Quarter FE|Yes|Yes|Yes|Yes|
|Observations|512|512|512|512|
|Mean Dep. Var.|3,500|2,019|527|1,278|
|SD Dep. Var.|3,001|1,716|621|1,071|

_Note:_ This table reports OLS estimates; the unit of observation is bank level and bank and bank _×_ quarter fixed effects are included. Standard errors are Davidson and McKinnon (1993). Total deposits is a variable aggregating demand, saving, and time deposits at bank level; it is continuous and measured in million birr. Private lending embodies lending to the private (no financial sector, no public sector, regions, cooperatives) at bank level; it is continuous and measured in million birr. NBE bills is the amount of bills issued by the NBE at bank level; it is continuous and measured in million birr. All safe assets is the amount of liquid assets held by banks in cash, bank-to-bank deposits, and reserves at the NBE and NBE bills; it is continuous and measured in million birr. The variables are made intertemporally comparable using the core inflation figures from National Bank of Ethiopia (2012, 2013, 2014) and all figures are in real million birr, constant at 2010 prices. The means and standard deviations of these variables are reported in the last tow rows of the table. All of these variables are regressed over 13 quarter dummy variables, which span all the months in our data. The policy change occurs in Quarter 5 (April, May, and June 2011). These regressions measure the quarterly evolution, and an interaction of these dummies with the big bank dummy, to verify whether bigger banks are differentially affected more by the policy, as Proposition 2 states. The reported coefficients are only for the interaction between the big bank dummy and the period dummy; it can be seen that before the policy change, the null hypothesis of parallel trends cannot be rejected, while it is rejected afterward. Figures 5 and 6 plot all the coefficients over time. In Appendix F, we report the same exercise employing consecutive two-month dummies rather than quarters to exploit more granular data; the results are unchanged. ***, **, and * indicate significance at the 1%, 5%, and 10% levels, respectively.

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