Table 2.

Impact of the COVID-19 pandemic on bank performance and bank stability: A global perspective.

	Panel A: Bank performance				Panel B: Bank stability
	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)
	ROAA	ROAE	NIM	CIN	ZSC	NPL	PRK	LRK	ORK
COVID-19	-0.357 * **	-1.489 * *	-0.685 * **	-0.383 * **	0.414 * **	0.047	0.315 * **	1.261 * **	0.116 * **
	(0.114)	(0.603)	(0.117)	(0.075)	(0.025)	(0.051)	(0.084)	(0.449)	(0.041)
SIZE	0.499 * **	3.143 * **	-0.156 * **	-11.846 * **	0.092 * **	0.137 * **	0.177 * **	1.211 * **	0.338 * **
	(0.150)	(1.128)	(0.017)	(.326)	(0.003)	(0.007)	(0.008)	(0.196)	(0.005)
CAP	0.078 * **	0.219 * **	0.097 * **	-0.202 * **	-0.034 * **	-0.010 * **	-0.015 *	-0.147 * **	-0.003 * *
	(0.012)	(0.049)	(0.014)	(0.003)	(0.006)	(0.003)	(0.008)	(0.040)	(0.001)
LIQ	0.021	0.338	0.377	-11.224 * **	-0.155	-0.163	-0.015	-0.255	-0.384 * *
	(0.219)	(1.178)	(0.173)	(2.158)	(0.145)	(0.112)	(0.161)	(0.84)	(0.182)
LTA	0.094 * **	0.311 * **	-0.002	-0.241 * **	-0.007 * **	-0.018 * **	-0.006 * **	-0.025 * **	-0.008 * **
	(0.001)	(0.011)	(0.002)	(0.019)	(0.002)	(0.001)	(0.002)	(0.009)	(0.001)
DIV	0.012 * **	0.070 * **	0.041 * **	-0.203 * **	-0.091 * **	-0.002 * **	-0.001 * *	-0.007 * *	-0.001 * **
	(0.001)	(0.005)	(0.001)	(0.009)	(0.001)	(0. 000)	(0.001)	(0.004)	(0. 000)
CON	0.010 * **	0.098 * **	0.012 *	-0.152 * **	-0.003 *	-0.003 * *	0.002	0.029	-0.008 * **
	(0.003)	(0.034)	(0.007)	(0.030)	(0.002)	(0.002)	(0.002)	(0.022)	(0.001)
GDPpc	0.012 *	0.224 * **	0.104 * **	-0.174 * *	0.013 * **	0.007 * *	0.027 * **	0.054 * *	0.015 * **
	(0.007)	(0.055)	(0.005)	(0.069)	(0.003)	(0.003)	(0.006)	(0.027)	(0.003)
INF	-0.321 * **	-0.381 * **	-0.133 * **	-0.356 * **	0.005	-0.003	0.020	0.011	0.031
	(0.008)	(0.041)	(0.006)	(0.075)	(0.005)	(0.003)	(0.016)	(0.029)	(0.023)
${\alpha }_0$	-4.515 * **	-23.924 * *	1.002	149.472 * **	-3.173 * **	3.126 * **	2.064 * *	15.355 * *	0.557
	(1.357)	(9.789)	(1.983)	(4.728)	(0.794)	(0.915)	(0.903)	(6.813)	(0.532)
Observations	24,953	24,601	24,940	24,906	22,781	12,602	24,270	23,729	23,838
R-squared	0.144	0.133	0.184	0.151	0.162	0.124	0.123	0.122	0.132
Bank FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Time FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes

This table shows the results for the baseline regression on analyzing the effect of the COVID-19 pandemic on bank performance and stability. The sample consists of 2073 banks in 106 countries from 2016 Q1 to 2021 Q2. Panel A represents the outcomes for bank performance measured as ROA, ROE, NIM, and CIN. Panel B shows the bank stability results, which are measured as ZSC, NPL PRK, LRK, and ORK. COVID-19 is our primary explanatory variable of interest which equals one during the first three quarters of 2020 and otherwise zero. We also control several bank-specific and country-specific factors, time (quarter) fixed effects, and bank-fixed effects. Robust standard errors are clustered at the country level and reported in parentheses *** p < 0.01, ** p < 0.05, * p < 0.1.