S/N

Variables

Acronym

Variable Measurement

Dependent Variables

1

Stability

STAB

Z-score = (ROA + ratio of equity to total asset)/standard deviation of ROA

Basel III regulatory requirements: Independent Variables

2

Minimum Capital Requirement

MCR

Minimum ratio of Tier 1 + Tier 2

3

Capital Adequacy Ratio

CAR

Tier 1 + Tier 2/Risk Weighted Asset

4

Capital Buffer Premium

CBP

Actual capital (core capital plus supplementary capital) less minimum regulatory capital.

5

Liquidity Coverage Ratio

LCR

HQLA/ENCO

6

Prescribed Minimum Capital Requirement

pMCR

As Prescribed by Basel III Accord

7

Prescribed Capital Adequacy Ratio

pCAR

As Prescribed by Basel III Accord

8

Prescribed Capital Buffer Premium

pCBP

As Prescribed by Basel III Accord

9

Prescribed Liquidity Requirements

pLCR

As Prescribed by Basel III Accord