Table 6.
Effect of bank ownership and importance. This table reports the results of regressing bank NPL ratios (dependent variable) on the interaction between a bank's exposure to COVID-19 case numbers and bank ownership and importance. Columns (1) – (3) present results for the dummy variable for foreign banks, state-owned commercial banks, and Big Five banks, respectively. 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*D_foreign | 14.664* | ||
| (8.329) | |||
| COVID cases*D_state | −0.215* | ||
| (0.129) | |||
| COVID cases*D_top5 | −0.320*** | ||
| (0.108) | |||
| COVID cases | 0.060** | 0.061** | 0.060** |
| (0.030) | (0.030) | (0.030) | |
| Loan-to-deposit ratio | 1.224*** | 1.261*** | 1.220*** |
| (0.455) | (0.482) | (0.454) | |
| Size | −0.238 | −0.222 | −0.243 |
| (0.219) | (0.238) | (0.220) | |
| ROA | −1.258*** | −1.278*** | −1.258*** |
| (0.187) | (0.191) | (0.186) | |
| GDP_GR | 5.224*** | 5.372*** | 5.263*** |
| (1.732) | (1.796) | (1.734) | |
| Unemployment | 4.256*** | 4.454*** | 4.269*** |
| (1.098) | (1.138) | (1.098) | |
| Interest | 0.599 | 0.652 | 0.603 |
| (0.527) | (0.537) | (0.527) | |
| Observations | 2821 | 2756 | 2821 |
| Adj. R-squared | 0.655 | 0.650 | 0.655 |
| Bank FE | Yes | Yes | Yes |
| Year-Quarter FE | Yes | Yes | Yes |