Variable type

Variable name

Symbol

Variable definition

Interpreted variable

Loan growth rate

$LOA{N}_{i,t}$

$\frac{Loanbalanc{e}_t-Loanbalanc{e}_{t-1}}{Loanbalanc{e}_{t-1}}$

Non-performing loan ratio

$NP{L}_{i,t}$

$\frac{\text{Baddebt}}{\text{Totalloanbalance}}$

Explanatory variable

Leverage ratio

$LE{R}_{i,t}$

$\frac{\text{Tier-1capital}}{\text{Adjustedbalanceofassetsinsideandoutsidethetable}}$

Control variable

Capital adequacy ratio

$CA{R}_{i,t}$

$\frac{\text{Tier1capital}}{\text{Riskweightedassets}}$

Proportion of bank size

$ASSE{T}_{i,t}$

$\frac{\text{Balanceoftotalassetsattheendoftheperiod}}{\text{Totalassetsofthesamplebank}}$

Market share

$M{S}_{i,t}$

$\frac{\text{Endingloanbalance}}{\text{Totalsamplebankloans}}$

Return on net assets

$RO{E}_{i,t}$

$\frac{\text{Netprofit}}{\text{Owne <msup> r <mo> ′ </mo> </msup> sequity}}$

Economic growth rate

$GDP{R}_t$

$\frac{GD{P}_t-GD{P}_{t-1}}{GD{P}_{t-1}}$

Growth rate of money supply

$M_t$

$\frac{M{2}_t-M{2}_{t-1}}{M{2}_{t-1}}$