Table 10 List of variables
Variable | Definition | Source |
|---|---|---|
1–HHI | 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 | CBRC |
Age | The number of years since the bank has existed | CSMAR |
Asset ratio | The growth rate of total assets | CSMAR |
Asset quality | Loan loss reserves divided by gross loans | CSMAR |
Avg distance | The average distance between a city bank’s headquarter’s county and the county of its affiliated subsidiary banks | CBRC |
Capital | Book value of equity capital divided by total assets | CSMAR |
Cost | The ratio of operating cost, measured by (Operating cost)/ (Total Cost) | CSMAR |
Distance | the distance between bank‘s “home” city and other cities | CBRC |
Diversification dummy | A dummy variable that takes on the value of one if a city bank has subsidiaries in other cities and zero otherwise. | CBRC |
GDP | Gross domestic product of the bank’s headquarter city | CSMAR |
Loan ratio | Total loan ratio, measured by the bank’s annual loan divided by the total asset | CSMAR |
Market share | 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 | CSMAR |
NPL ratio | 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 | CNRDS |
ROA | ROA is given as (Net income) / (Total asset) | CSMAR |
ROE | ROE is given as (Net income) / (Total equity) | CSMAR |
Size | The book value of the bank’s total assets | CSMAR |