Variable	Definition	Description
Cost expenditures	Interest expenses + non-interest expense	Variables thought to constitute the distribution cost structure of banks and cost residuals.
Loans	Loans and advances	Comprise major types of loans the commercial banks grants such as commercial loans, consumer loans, Agric production loans, etc.
Transaction and liquidity services	Proxied by volume of deposits	Comprises deposits volumes received by the commercial banks from customers and other banks.
Fee based service	Proxied by net fee income	Comprises commission received from trading activities less commission paid on trading activities.
Prices of factors of production	Proxied by staff cost + cost of borrowed fund + cost of plant and equipment	Staff cost comprise wages and other benefit. Cost of borrowed fund is proxied by ratio of interest expenses to total deposits. Cost of plant and equipment comprise purchase of tangible and intangible assets less any realization from the sale of plant and equipment in the same financial year.
Banks risk exposures	Proxied by risk-weighted assets	Total risk weighted assets calibrated by the respective commercial banks in the computation of their capital adequacy ratio.
Market and regulatory environment	Proxied by changes in equity capital	This indicates the state or condition in which the commercial banks operate.