Table 5.
Random effect results for Basel CAR and performance of banks in Africa.
Source: Authors’ calculation based on data from Bloomberg database (2020)
| Basel levels | Basel II | Basel III | Basel IV |
|---|---|---|---|
| ROE | ROE | ROE | |
| BIIcap | 0.025** | ||
| (0.011) | |||
| BIIIcap | 0.066 | ||
| (0.057) | |||
| BIVcap | 0.093* | ||
| (0.05) | |||
| _Isize_2 | 0.046*** | 0.067 | 0.077 |
| (0.011) | (0.063) | (0.062) | |
| _Isize_3 | 0.045*** | 0.018 | 0.026 |
| (0.012) | (0.064) | (0.063) | |
| _Isize_4 | 0.021 | 0.023 | 0.027 |
| (0.013) | (0.068) | (0.067) | |
| _Isize_5 | 0.008 | 0.07 | 0.085 |
| (0.015) | (0.082) | (0.081) | |
| Leverage | − 0.024*** | 0.105** | 0.078* |
| (0.008) | (0.046) | (0.046) | |
| Loandp | 0.006 | 0.000 | 0.042 |
| (0.009) | (0.052) | (0.059) | |
| Gdpgrowth | 0.001 | 0.013 | 0.009 |
| (0.005) | (0.029) | (0.029) | |
| Reporate | 0.007** | 0.002 | − 0.001 |
| (0.003) | (0.02) | (0.02) | |
| Nplta | − 0.018*** | − 0.080*** | − 0.079*** |
| (0.003) | (0.018) | (0.018) | |
| Inflat | 0.027*** | 0.004 | 0.007 |
| (0.006) | (0.04) | (0.039) | |
| _cons | 5.359*** | 4.984*** | 4.912*** |
| (0.051) | (0.335) | (0.33) | |
| N | 383 | 403 | 404 |
Standard errors are in parentheses * p < 0.1, ** p < 0.05, *** p < 0.001