# **Table 2 Summary Statistics on Bank, Macroeconomic and Institutional Variables**

The table presents summary statistics of variables. _Fee income_ is the share of non-interest income in total operating income. _Non-deposit funding_ is the share of non-deposit short-term funding in total deposits & short-term funding. _Fee income sq_ and _non-deposit funding sq_ are the squares of fee income and non-deposit funding, respectively. _Return on assets_ is the profit before tax as a percentage of total assets of a bank. _Z-_ _ROA_ + _CAR score_ is a measure of bank solvency defined as , where ROA is the return on assets, CAR _SROA_ represents the capital assets ratio and SROA stands for the standard deviation of return on assets. _Assets_ is the natural logarithm of total assets in US $. _Equity_ is the capital to asset ratio, which is defined as equity as a percentage of total assets. We used one period lag of equity in the regressions. _Assets growth_ is the inflationadjusted growth rate of bank assets. _Overhead_ is defined as overheads as a percentage of total assets. _Investment bank dummy_ , _Non-bank credit institution dummy_ and _other dummy_ are dummy variables that equal 1 for investment bank, non-bank credit institution and other banks, respectively, and 0 otherwise. All bank level variables are from Bankscope. _Inflation_ is the inflation rate based on consumer prices. _GDP growth_ is the inflation adjusted growth rate of GDP per capita of the country. _GDP per capita_ is in thousands of 2000 constant US$. The macroeconomic data are obtained from World Development Indicators (WDI) of World Bank. _Restrict_ is the index of regulatory restrictions on bank activities from Barth et al. (2003). It takes value from 3 to 11 with higher values indicating more restrictiveness. _Rights_ measures the legal protection of shareholders from La Porta et al. (1998), ranging from 0 to 5 with higher values indicating more protection of shareholders. _Self-dealing_ is the anti-self-dealing index from Djankov et al. (2005), ranging from 0 to 1 with a higher value indicating more control of self-dealing. _Capital_ is the index of regulatory oversight of bank capital from Barth et al. (2003). It ranges from 3 to 10 and higher values indicate greater stringency. _Official_ is an index of power of commercial bank supervisory agency, from Barth et al. (2003). It measures the power of the supervisory authorities to take specific actions to prevent and correct problems, with higher values indicating greater power. _Diversification_ is an index of diversification guidelines imposed on banks from Barth et al. (2003). It ranges from 0 to 2, with higher values indicating more diversification. _Financial freedom_ is from the Economic Freedom Indicators of Heritage Foundation. It is scaled from 0 to 100 where 100 with higher values indicating <u>greater freedom.</u>

|Variable|No. of<br>observations|Mean|Standard<br>Deviation|Minimum|Maximum|
|---|---|---|---|---|---|
|_Bank variables_||||||
|Fee income|7266|0.353|0.218|0|1|
|Fee income sq|7266|0.172|0.22|0|1|
|Non-deposit funding|7212|0.081|0.151|0|1|
|Non-deposit funding sq|7212|0.03|0.108|0|1|
|Return on assets|7416|0.018|0.038|-0.805|0.416|
|Z-score|6554|30.740|26.863|0.068|147.055|
|Assets|7416|21.907|2.113|15.009|28.306|
|Equity|5988|0.119|0.127|0|1|
|Assets growth|5646|0.094|0.188|-3.103|0.996|
|Overhead|7403|0.043|0.083|0|3.415|
|Investment bank dummy|7416|0.073|0.260|0|1|
|Non-bank credit institution dummy|7416|0.030|0.172|0|1|
|Other dummy|7416|0.045|0.207|0|1|
|_Macroeconomic variables_||||||
|Inflation|7069|0.045|0.169|-0.013|4.317|
|GDP growth|6932|-0.008|0.036|-0.290|0.120|
|GDP per capita|7136|24.788|14.647|0.129|54.178|

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