Variable | Name | Definition |
Explained variables | LnLOAN | Natural logarithm of the loan |
LTD | Loan/deposit * 100 | |
LA | Loan/total assets * 100 | |
Core explanatory variable | LnEPU2 | First order lag of exponential natural logarithm of economic policy uncertainty index |
Control variable | GGDP | GDP constant price growth rate * 100 |
CPI | An important indicator of the rate of inflation * 100 | |
M2 | M2 year-on-year growth rate * 100 | |
CAR | Net capital/(weighted risk assets + 12.5 market risk capital) * 100 | |
EA | Total equity/total assets * 100 | |
SIZE | The natural logarithm of the total assets | |
ROA | After-tax net profit/average total assets * 100 | |
LR | Liquid assets/liquid liabilities * 100 | |
CTI | (operating expenses + depreciation)/operating income * 100 | |
NIRR | (net fee and commission income + other business income + non-interest income on investment)/operating income *100 |