Dependent variable:

NPL Impaired Loans/Gross Loans (%)

Coefficient

OLS

GMM

t-statistic

t-statistic

(Constant)

−6.016

−7.227^***

−4.616^***

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

0.648

6.735^***

4.495^***

Loan amount (LAMOUNT)

0.429

10.307^***

6.401^***

Capital (t − 1) * Loan-Amount

−0.039

−7.923^***

−5.123^***

LASSETS

−0.002

−3.293^***

−4.603^***

SUBDEBT

−1.502

−0.674

−0.480

LIQUIDITY

−5.014

−4.020^***

−3.663^***

Adj-R²

0.092

Observation

3672