S/N

Variables

Acronym

Variable Measurement

Dependent Variables

1

Financial Performance

FP

ROE = ratio of profit after taxes to equity; ROA = ratio of profit after taxes to total assets.

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 Requirements

LCR

HQLA/ENCO