Variables

Description of variables

Expected

sign

Previous work

PNP

Nonperforming loan ratio

-

-

ROA

Return of des assets

Negative

Positive

Positive

Positive

Negative

Louzis et al. (2012)

Rajan (1994)

Keeton (1999)

Rajan (1994)

Keeton & Morris (1987)

RFA

Capital

RPA

Ratio of loans to total assets

Positive

Sinkey & Greenwalt (1991)

RCD

Ratio of loans to deposits

Positive

Swamy (2012); Ahmad & Bashir (2013)