Variables (code) | Operational Definitions | Prior Studies where inspiration were drawn from |
Dependent Variable (Performance) |
| |
ROA | Net Income/Total Assets | |
Independent Variables (Market Risk proxies ) |
| |
IRSK | log of Net Interest Margin (NIM) or Difference between the cost of borrowing and return on saving (investment) by bank customers | |
FXRSK | Measured as the log of exposure in a certain currency, multiplied with the variation in time of the foreign exchange. | |
EQRSK | Log of Variance between the expected return and the actual return provided by an investment. | |
CARSK | Measured as Tier 1 capital + Tier 2 capital/Risk weighted assets | |