One-step GMM | Two-step GMM | |||||
Coefficient | Robust SE | P-value | Coefficient | Robust SE | P-value | |
Constant/Intercept | 7.331 | 4.950 | ||||
Lagged log of bank loans | 0.559 | 0.257 | 0.03** | 0.65 | 0.182 | 0.000*** |
Macroeconomic Variables | ||||||
Log of Real GDP | 0.146 | 0.139 | 0.297 | 0.222 | 0.110 | 0.043** |
Inflation | −0.003 | 0.002 | 0.135 | −0.003 | 0.001 | 0.019** |
Monetary Policy rate | −0.429 | 0.196 | 0.029** | −0.426 | 0.156 | 0.006*** |
Bank characteristics | ||||||
Capitalization*MPR | −0.001 | 0.001 | 0.305 | −0.0004 | 0.001 | 0.472 |
Size*MPR | 0.024 | 0.011 | 0.034** | 0.023 | 0.009 | 0.007*** |
Liquidity*MPR | −0.001 | 0.001 | 0.123 | −0.001 | 0.0003 | 0.103 |
No of Banks | 11 | 11 | ||||
No of Observations | 209 | 209 | ||||
AR(1), P-value | 0.023 | 0.025 | ||||
AR(2), P-value | 0.575 | 0.569 | ||||
Sargan Test (p-value) | 0.212 | 0.212 |