Table 3.
Regression results for the relationship between life insurance market size and bank stability.
| Dependent variable |
Z-score |
1/NPL |
||
|---|---|---|---|---|
| (1) |
(2) |
|||
| Co.eff | t.stat | Co.eff | t.stat | |
| LIMS | 0.048∗∗∗ | 2.24 | 0.162∗∗∗ | 2.57 |
| HHI | 2.117∗∗ | 2.16 | 0.151 | 1.07 |
| BCON | 0.009 | 0.73 | 0.000 | 0.53 |
| GDP | 0.935 | 1.42 | 0.130∗∗∗ | 3.30 |
| PPG | 0.686∗ | 1.75 | −0.009 | −0.35 |
| CISH | 0.090∗∗∗ | 2.32 | −0.003 | −1.22 |
| LER | 0.052 | 1.30 | −0.001 | −0.24 |
| WGI | 3.347∗∗∗ | 3.00 | 0.174∗∗∗ | 2.58 |
| NII | −0.033∗∗∗ | −2.73 | −0.004∗∗ | −4.11 |
| Cons | 8.629 | 1.56 | −0.716∗∗ | −2.14 |
| Year fixed-effect | Yes | Yes | ||
| Obs | 571 | 414 | ||
| F-test (p.value) | 0.00 | 0.00 | ||
Note: This table reports the fixed-effect estimation results for Equation (1) by using the Z-score and 1/NPL as dependent variables. ∗, ∗∗, and ∗∗∗ indicate statistical significance at the 10 %, 5 %, and 1 % levels, respectively. All variables are defined in Appendix A.