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. |