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