| Variable name | Explanation |
| LLP | Loan loss provisions (LLPs) scaled by beginning total assets |
| Sys | Indicator variable set equal to 1 if system issued, and 0 otherwise |
| EBTP | Earnings before provisions and taxes scaled by beginning total assets |
| Tier1 | Tier 1 is the ratio of Tier 1 capital to risk weighted assets |
| NPL | Beginning non-performing scaled by beginning total assets |
| LOAN | Beginning total loans outstanding scaled by beginning total assets |
| NCO | Net charge-offs scaled by beginning total assets |
| GROWTH | Growth in total assets from the beginning to the end of year t |
| ROE | Beginning net income scaled by beginning net assets |
| SIZE | Natural logarithm of beginning total assets |
| S | Indicator variable set equal to 1 if bank is a biger one, and 0 otherwise |