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# 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 |