Variable

Name

Definition

Explained variables

LnLOAN

Natural logarithm of the loan

LTD

Loan/deposit * 100

LA

Loan/total assets * 100

Core explanatory variable

LnEPU2

First order lag of exponential natural logarithm of economic policy uncertainty index

Control variable

GGDP

GDP constant price growth rate * 100

CPI

An important indicator of the rate of inflation * 100

M2

M2 year-on-year growth rate * 100

CAR

Net capital/(weighted risk assets + 12.5 market risk capital) * 100

EA

Total equity/total assets * 100

SIZE

The natural logarithm of the total assets

ROA

After-tax net profit/average total assets * 100

LR

Liquid assets/liquid liabilities * 100

CTI

(operating expenses + depreciation)/operating income * 100

NIRR

(net fee and commission income + other business income + non-interest income on investment)/operating income *100