Dependent variable:

NPL Impaired Loans/Gross Loans (%)

Coefficient

OLS

GMM

t-statistic

t-statistic

(Constant)

−16.643

−9.425^***

−3.493^***

Bank’s capital (t − 1) Equity/Total Assets - %

1.596

9.097^***

2.748^***

Loan amount (LAMOUNT)

0.795

9.049^***

3.415^***

Capital (t − 1) * Loan-Amount

−0.064

−7.349^***

−2.247^**

Adj-R²

0.132

Observation

4597