Dependent variable: Lending interest rate Average values of significant coefficients Model 4: Small banks Independent variable Weighted Least Squares Fixed effect Random effect No Lag 1 Lag No Lag 1 Lag No Lag 1 Lag const 20.127** 30.094* 42.013** −40.791 29.771* 9.514 il 0.099 0.138 0.154 id 0.019 0.581** −0.233 −0.444 0.021 0.732 0.581 ras 0.123 −0.428 0.073 −1.228** 0.181 −0.716 0.228 opcr 0.315*** −0.360** 0.237* −0.297 0.335*** −0.353 0.312 nplr −0.081*** 0.064 −0.137*** 0.445* −0.109** 0.184 0.070 siz −0.931 −11.400*** 0.067 2.384 −1.778 −9.747* liqr −0.035 −0.239*** −0.058 −0.211 −0.040 −0.248* −0.239 provr −0.032 −0.420** −0.030 −2.020** −0.024 −0.588* −1.009 smr −1.220*** 1.273 −1.832* 1.704 −2.015*** 3.018 −1.850 rgdp 0.541 −1.036* −1.187 4.168 −0.175 −0.707 −1.036 infl −0.164 0.099 −0.451* 0.718 −0.175 0.226 −0.451 itbl 0.100 −0.111 0.080 −0.118 0.090 0.111 HHI_AS 0.003 −0.009 0.005 0.020 0.007 −0.014 0.020 Adj R2 0.309 0.473 F-stastic 6.749*** 5.628*** F(12, 39) = 2.764*** F(13, 37) = 6.082*** Null hypothesis Groups common intercept: Welch F(39, 33.4) = 0.794; p-value = 0.756 Groups common intercept: Welch F(37, 24.8) = 1.125; p-value = 0.384 1) Breusch-Pagan test: Unit-specific error variance = 0; Chi-square (1) = 0.083, p-value 0.772. Hausman test: GLS estimates are consistent; Chi-square (12) = 26.392, p-value 0.0.009 1) Breusch-Pagan test: Unit-specific error variance = 0; Chi-square (1) = 1.383 p-value 0.239; Hausman test: GLS estimates are consistent; Chi-square (13) = 58.712, p-value 0.000