S/N

Variables

Acronym

Variable Measurement

Dependent Variables

1

Risk Taking Behaviour

RTB

RWATA = Risk Weighted Asset/Total Asset.

NPLTL = ratio of non-performing loan to total loan.

LNZ-score = Natural Log of Z-Score

Basel III regulatory requirements: Independent Variables

2

Minimum Capital Requirement

MCR

Minimum ratio of Tier 1 + Tier 2

3

Capital Adequacy Ratio

CAR

Tier 1 + Tier 2/Risk Weighted Asset

4

Capital Buffer Premium

CBP

Actual capital (core capital plus supplementary capital) less minimum regulatory capital.

5

Liquidity Requirements

LCR

HQLA/ENCO

6

Profitability

P

ROA = ratio of profit after taxes to total assets.