Table A9.

Impact of policy contagion on policy announcements (Probit model).

	Liquidity		Prudential		Borrower Support		Monetary Policy		Asset Purchases
	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)	(10)
Liquidity ratio	0.138	0.017	0.012	0.006	0.176	0.213	-0.081	-0.341*	-0.107	-0.017
	[0.111]	[0.134]	[0.111]	[0.109]	[0.129]	[0.139]	[0.119]	[0.201]	[0.134]	[0.136]
Oil exposure	-0.005	-0.209	0.007	-0.125	-0.169	-0.187	0.010	-0.032	0.095	0.176
	[0.156]	[0.178]	[0.102]	[0.121]	[0.126]	[0.143]	[0.082]	[0.135]	[0.185]	[0.187]
Size	-0.188	-0.094	0.135	0.140	0.020	0.038	-0.062	0.234	0.039	-0.052
	[0.127]	[0.142]	[0.114]	[0.127]	[0.134]	[0.135]	[0.123]	[0.142]	[0.153]	[0.188]
Public bank	0.149	0.297*	0.210**	0.258***	0.189*	0.303***	0.325***	0.056	-0.099	0.022
	[0.161]	[0.155]	[0.093]	[0.092]	[0.108]	[0.118]	[0.092]	[0.142]	[0.131]	[0.155]
Capital ratio	-0.170	0.020	0.020	0.073	-0.218	-0.172	-0.245*	-0.067	-0.092	-0.194
	[0.145]	[0.187]	[0.102]	[0.120]	[0.144]	[0.176]	[0.148]	[0.197]	[0.184]	[0.218]
COVID	0.049	0.065	0.029	0.009	-0.237	-0.298	0.062	0.083	0.064	0.079
	[0.045]	[0.050]	[0.062]	[0.097]	[0.175]	[0.229]	[0.055]	[0.052]	[0.099]	[0.097]
Domestic returns	0.070	0.015	0.248	0.287	0.028	0.197	0.138	0.010	-0.043	0.025
	[0.255]	[0.307]	[0.194]	[0.226]	[0.196]	[0.203]	[0.241]	[0.268]	[0.238]	[0.244]
Bank returns	-0.204	-0.035	-0.015	0.056	-0.264**	-0.245	-0.123	-0.034	0.016	-0.063
	[0.180]	[0.192]	[0.128]	[0.145]	[0.132]	[0.157]	[0.170]	[0.231]	[0.139]	[0.151]
World returns	0.153	0.346	0.339*	0.603***	0.200	0.426	0.265	0.378	0.330	0.366
	[0.142]	[0.270]	[0.174]	[0.206]	[0.241]	[0.297]	[0.273]	[0.298]	[0.265]	[0.314]
Same		2.389***		0.700**		0.582***		2.239***		0.248*
		[0.534]		[0.355]		[0.223]		[0.355]		[0.148]
Other		-1.104**		-0.415		0.247		-0.994**		-0.208
		[0.498]		[0.501]		[0.268]		[0.388]		[0.274]
Constant	-2.306***	-2.502***	-1.361***	-1.440**	-1.941***	-2.774***	-1.800***	-3.681***	-2.086***	-2.094***
	[0.356]	[0.573]	[0.459]	[0.559]	[0.486]	[0.626]	[0.390]	[0.539]	[0.409]	[0.438]
Observations	870	870	771	771	920	920	1019	1019	662	662

Notes: The table presents the estimates of Probit regressions at the country-date level on the probability of announcing a financial sector policy from February 1 to April 17, 2020. The dependent variable corresponds to an indicator variable that equals 1 on dates that a country announces the policy in each panel and zero otherwise. Post-announcement observations are dropped from the sample. For each country, Liquidity ratio (cash & due from banks/total assets), Oil exposure, Size (log of assets) and Capital ratio (Tier 1 + Tier 2 capital over total assets) are averaged over the period 2019Q1-2019Q4 across banks in the sample. Public bank is the country share of state-owned banks in the sample. COVID corresponds to the lagged daily percentage change confirmed COVID-19 cases per million citizens. Same corresponds to the regional one-day-lagged share of countries that announce the policy in each panel. Other corresponds to the regional one-day-lagged share of countries that announce other financial sector policies different from the policy in each panel. Additional controls include one-day lagged accumulated bank returns averaged for each country as well as the one-day lagged accumulated domestic and world market returns. All control variables are standardized with mean 0 and standard deviation 1. All specifications include week fixed effects. Standard errors are clustered at the country level.