Table 9.
Definition of key variables.
| Symbol | Variable | Description | BankFocus ID No. |
|---|---|---|---|
| TOC | Total cost | Calculated as the sum of interest + non-interest expense | 72800 |
| Outputs | |||
| y1 | Total Loans | Gross loans less reserve for loan loss provision | 51350 |
| y2 | Total financial securities | Sum of securities held to maturity and securities held for sale | 81390, 81450 |
| Input Prices | |||
| w1 | Price of Deposits | Ratio of interest expense to total deposits | 71000, 60300 |
| w2 | Price of Labour | Ratio of salaries to total assets | 72500, 52600 |
| w3 | Price of Physical capital | Ratio of expenditure on premises and fixed assets to fixed assets | 72700, 51800 |
| Earnings Management | |||
| LLP (%) | Loan Loss Provisions | Ratio of loan loss provision to total loans | 72200, 80410 |
| LLR (%) | Loan Loss Reserves | Ratio of loan loss reserves of total loans | 80440, 80410 |
| FA | Fixed Assets | Fixed assets calculated as the sum of Property, plant & equipment | 51800 |
| GROW (%) | Net Income Growth | Growth rate of net income | 74700 |
| TA | Total Assets | Natural logarithm of total assets | 52600 |
| TL | Total Liabilities | Ratio of total liabilities to total assets | 61900 |