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1–HHI
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Branches dispersion index as a measure of geographic diversification, 1 − Herfindahl index of branches across cities is one minus the sum of squared branches held in other cities
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CBRC
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Age
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The number of years since the bank has existed
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CSMAR
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Asset ratio
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The growth rate of total assets
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CSMAR
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Asset quality
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Loan loss reserves divided by gross loans
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CSMAR
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Avg distance
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The average distance between a city bank’s headquarter’s county and the county of its affiliated subsidiary banks
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CBRC
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Capital
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Book value of equity capital divided by total assets
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CSMAR
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Cost
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The ratio of operating cost, measured by (Operating cost)/ (Total Cost)
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CSMAR
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Distance
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the distance between bank‘s “home” city and other cities
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CBRC
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Diversification dummy
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A dummy variable that takes on the value of one if a city bank has subsidiaries in other cities and zero otherwise.
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CBRC
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GDP
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Gross domestic product of the bank’s headquarter city
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CSMAR
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Loan ratio
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Total loan ratio, measured by the bank’s annual loan divided by the total asset
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CSMAR
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Market share
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The market share of the loan, measured by the total loan of one city commercial bank divided by the total loan of the city commercial banks’ sector
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CSMAR
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NPL ratio
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Non-performing loan is given as (Non-performing Loan) / (Total loan), measured by the sum of loans past their 90-day due or more and still accruing, and the non-accrual loans, divided by total loans
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CNRDS
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ROA
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ROA is given as (Net income) / (Total asset)
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CSMAR
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ROE
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ROE is given as (Net income) / (Total equity)
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CSMAR
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Size
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The book value of the bank’s total assets
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CSMAR
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