Table 5.

Regression results for the relationship between life insurance market size and bank stability in low and high bank-stability countries.

Sub-sample	Low bank stability countries				High bank stability countries
Dependent variables	Z-score		1/NPL		Z-score		1/NPL
	(1)		(2)		(3)		(4)
	Co.eff	t.stat	Co.eff	t.stat	Co.eff	t.stat	Co.eff	t.stat
LIMS	0.023∗∗	2.02	0.112∗∗∗	2.43	0.031	1.54	0.197∗∗∗	2.96
HHI	1.413	1.11	0.099	1.07	1.812∗	1.73	0.132	1.57
BCON	0.012	0.92	0.003	1.21	0.002	0.71	0.001	0.98
GDP	0.232∗	1.71	0.132∗∗∗	2.45	0.501	1.38	0.146∗∗	2.15
PPG	0.281∗	1.77	−0.005	−0.91	0.357∗∗	1.94	−0.012	−1.32
CISH	0.091∗∗∗	2.34	−0.003	−1.41	0.068∗	1.82	−0.001	−1.29
LER	0.061	1.34	−0.001∗	−1.71	0.051	1.26	−0.002	−1.48
WGI	1.335∗∗∗	3.21	0.144∗∗∗	2.41	2.329∗∗	2.12	0.115∗∗	2.18
NII	−0.033∗∗∗	−2.44	−0.024∗∗∗	−3.10	−0.026∗	−1.78	−0.003∗∗∗	−3.17
Cons	6.614	1.36	−0.619∗∗∗	−2.55	7.656∗∗∗	2.76	−0.215∗∗∗	−2.57
Year fixed-effect	Yes		Yes		Yes		Yes
Observation	257		265		314		149
F-test (p.value)	0.00		0.00		0.00		0.00

Note: This table reports the fixed-effect estimation results for Equation (1) using the Z-score and 1/NPL as dependent variables. Regressions 1–2 and 3–4 show low and high bank-stability countries, respectively. ∗, ∗∗, and ∗∗∗ indicate statistical significance at the 10 %, 5 %, and 1 % levels, respectively. All variables are defined in Appendix A.