Table 3.
Impact of COVID-19 on loan growth rates. This table reports the impact of the COVID-19 crisis on the loan growth rate (dependent variable). Models (1), (2) and (3) regress the loan growth rate on a bank's exposure to new confirmed cases, cumulative COVID cases and new COVID-19 deaths, respectively, in a quarter. All the regressions control for the loan-to-deposit ratio, logarithm of bank total assets (Size), return on assets (ROA), GDP growth rate (GDP_GR), overnight rate (Interest), unemployment rate (Unemployment), bank and year-quarter fixed effects. Variable definitions are reported in Table 1. Robust standard errors are reported in the parentheses. ***, **, and * indicate statistical significance at the 1%, 5%, and 10% levels, respectively.
| (1) | (2) | (3) | |
|---|---|---|---|
| COVID cases | −4.479*** | ||
| (0.746) | |||
| COVID cumulative cases | −0.636*** | ||
| (0.106) | |||
| COVID deaths | −1.113** | ||
| (0.460) | |||
| Loan-to-deposit ratio | 0.031* | 0.031* | 0.031* |
| (0.017) | (0.017) | (0.017) | |
| Size | 0.010** | 0.010** | 0.010** |
| (0.004) | (0.004) | (0.004) | |
| ROA | 2.024*** | 3.109*** | −0.283*** |
| (0.430) | (0.608) | (0.097) | |
| GDP_GR | 1.436*** | 0.297*** | −0.212*** |
| (0.263) | (0.084) | (0.051) | |
| Unemployment | 0.427*** | 0.015 | −0.069* |
| (0.100) | (0.043) | (0.036) | |
| Observations | 2821 | 2821 | 2821 |
| Adj. R-squared | 0.438 | 0.438 | 0.438 |
| Bank FE | Yes | Yes | Yes |
| Year-Quarter FE | Yes | Yes | Yes |