Table 3.
Pearson pairwise correlation.
| P | RISK- APP | LIC | ESG | ROE | DIV | RGDPGR | CPI | NEER | |
|---|---|---|---|---|---|---|---|---|---|
| P | 1.00 | ||||||||
| RISKAPP | −0.08∗∗∗ | 1.00 | |||||||
| LIC | 0.08∗∗∗ | −0.08∗∗∗ | 1.00 | ||||||
| ESG | −0.12∗∗∗ | 0.30∗∗∗ | 0.31∗∗∗ | 1.00 | |||||
| ROE | −0.08∗∗∗ | 0.38∗∗∗ | 0.00 | 0.26∗∗∗ | 1.00 | ||||
| DIV | 0.00 | −0.02 | −0.01 | 0.23∗∗∗ | −0.06∗∗∗ | 1.00 | |||
| RGDPGR | −0.09∗∗∗ | 0.19∗∗∗ | 0.25∗∗∗ | 0.15∗∗∗ | 0.55∗∗∗ | −0.04∗ | 1.00 | ||
| CPI | −0.01 | 0.28∗∗∗ | 0.20∗∗∗ | 0.19∗∗∗ | 0.49∗∗∗ | −0.02 | 0.47∗∗∗ | 1.00 | |
| NEER | −0.02 | −0.01 | −0.09∗∗∗ | −0.06∗∗ | −0.06∗∗ | 0.03 | −0.03 | 0.05∗∗ | 1.00 |
Notes: P = default probabilities (%); RISKAPP = risk appetite ratio (%); LIC = loan impairment charges-to-net revenue ratio (%); ESG = Environment, Social and Governance scores; ROE = return-on-equity ratio (%); DIV = dividend pay-out ratio (%); RGDPGR = growth rate in real gross domestic product (%); CPI = consumer price index (%), NEER = change in nominal effective exchange rate (%).