Dependent variable:

NPL Impaired Loans/Gross Loans (%)

Coefficient

OLS

GMM

t-statistic

t-statistic

(Constant)

−15.988

−7.391^***

−3.429^***

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

1.611

9.235^***

2.812^***

Loan amount (LAMOUNT)

0.783

8.788^***

3.350^***

Capital (t − 1) * Loan-Amount

−0.064

−7.433^***

−2.296^**

Loan Restrictions-SENIOR

−0.093

−0.074

−0.160

Loan Restrictions-SECURED

−0.378

−2.587^***

−2.242^**

Loan Restrictions-GUARANTOR

−0.091

−0.539

−0.598

Loan maturity (LMATURITY)

−0.034

−0.930

−0.615

Loan purposes (WORKCAPITAL)

1.699

4.448^***

2.157^**

Loan purposes (CORPORPOSES)

−0.597

−4.442^***

−3.859^***

Type of loan (TYPELOAN)

−0.216

−1.234

−1.042

LEADBANKERS

0.710

4.989^***

4.009^***

RELATIONSHIP

0.363

2.223^**

2.315^**

Adj-R²

0.149

Observation

4597