Dependent variable:

NPL Impaired Loans/Gross Loans (%)

Coefficient

OLS

GMM

t-statistic

t-statistic

(Constant)

−5.131

−5.350^***

−3.542^***

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

0.599

6.179^***

3.937^***

Loan amount (LAMOUNT)

0.393

9.133^***

5.322^***

Capital (t − 1) * Loan-Amount

−0.036

−7.334^***

−4.512^***

Loan Restrictions-SENIOR

0.000

−0.001

−0.001

Loan Restrictions-SECURED

−0.128

−2.234^**

−2.003^**

Loan Restrictions-GUARANTOR

−0.022

−0.336

−0.358

Loan maturity (LMATURITY)

−0.045

−3.194^***

−2.948^***

Loan purposes (WORKCAPITAL)

−0.014

−0.094

−0.095

Loan purposes (CORPORPOSES)

0.132

2.496^**

2.556^**

Type of loan (TYPELOAN)

−0.064

−0.944

−0.920

LEADBANKERS

0.077

1.336

1.370

RELATIONSHIP

0.123

1.922^*

1.935^*

LASSETS

−0.002

−3.322^***

−4.703^***

SUBDEBT

−2.273

−1.017

−0.718

LIQUIDITY

−5.226

−4.059^***

−3.839^***

Adj-R²

0.097

Observation

3672