. 2023 Feb 3;67:100784. doi: 10.1016/j.mulfin.2023.100784

Table 3.

Role of bank heterogeneity.

	Panel A: Bank performance				Panel B: Bank stability
Panel (i): Bank size effect
	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)
	ROAA	ROAE	NIM	CIN	ZSC	NPL	PRK	LRK	ORK
COVID-19	-1.078 * **	-1.205	-1.695 * **	6.202 * **	0.922 * **	0.115	1.041 * **	3.888 * **	0.313 * **
	(0.222)	(0.981)	(0.209)	(0.997)	(0.125)	(0.099)	(0.156)	(0.729)	(0.068)
COVID-19 * SIZE	0.090 * **	0.221 * **	0.143 * **	-0.589 * **	-0.066 * **	-0.007 * **	-0.092 * **	-0.338 * **	-0.026 * **
	(0.020)	(0.015)	(0.020)	(0.009)	(0.012)	(0.000)	(0.014)	(0.066)	(0.006)
SIZE	0.479 * **	3.384 * **	0.082	-11.515 * **	-0.132 * **	-0.166 * **	-0.224 * *	-1.418 * **	-0.053
	(0.149)	(1.125)	(0.247)	(0.598)	(0.001)	(0.021)	(0.103)	(0.119)	(0.063)
Controls variables	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Bank FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Time FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
$α_{0}$	-5.018 * **	-29.052 * **	4.476 * *	171.908 * **	-2.831 * **	3.415 * **	2.585 * **	17.678 * *	1.036 *
	(1.426)	(9.800)	(2.025)	(5.109)	(0.805)	(0.895)	(0.932)	(6.977)	(0.552)
Obs.	24,531	24,180	24,723	24,906	22,381	12,273	23,793	23,257	23,838
R-squared	0.054	0.042	0.201	.043	0.068	0.027	0.030	0.026	0.036
Panel (ii): Bank capitalization effect
	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)
	ROAA	ROAE	NIM	CIN	ZSC	NPL	PRK	LRK	ORK
COVID-19	-0.191 * *	-1.16 * *	-0.14 * *	-0.793	-0.344 * **	0.008	-0.190 * **	-0.774 * *	-0.089 * *
	(0.093)	(0.498)	(0.071)	(0.890)	(0.062)	(0.038)	(0.068)	(0.352)	(0.035)
COVID* CAP	-0.035 * **	-0.127 * **	-0.037 * **	-0.149 * **	0.004 * **	0.004 * *	0.008 * **	-0.029 * **	-0.001 *
	(0.002)	(0.012)	(0.002)	(0.023)	(0.002)	(0.002)	(0.002)	(0.009)	(0.001)
CAP	0.082 * **	0.222 * **	0.096 * **	-0.221 * **	-0.034 * **	0.006 * *	0.016 * **	-0.144 * **	0.003 * **
	(0.003)	(0.019)	(0.003)	(0.034)	(0.002)	(0.003)	(0.003)	(0.014)	(0.001)
Controls variables	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Bank FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Time FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
$α_{0}$	-4.902 * **	-28.477 * **	4.347 * **	172.056 * **	-2.987 * **	3.422 * **	2.396 * **	16.922 * **	0.973 * **
	(0.596)	(3.255)	(0.467)	(5.871)	(0.392)	(0.374)	(0.441)	(2.306)	(0.222)
Obs.	24,531	24,180	24,723	24,906	22,381	12,273	23,793	23,257	23,838
R-squared	0.061	0.042	0.199	0.044	0.064	0.027	0.025	0.024	0.034
Panel (iii): Bank liquidity effect
	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)
	ROAA	ROAE	NIM	CIN	ZSC	NPL	PRK	LRK	ORK
COVID-19	-0.435 * **	-1.778 * *	-0.806 * **	2.067 * **	-0.501 * **	0.171 * *	-0.529 * **	-2.055 * **	-0.117 * *
	(0.126)	(0.703)	(0.132)	(0.659)	(0.088)	(0.070)	(0.096)	(0.520)	(0.047)
COVID-19 *LIQ	0.054 * *	0.015 * **	0.884 * **	-0.029 * **	-0.351 * **	-0.451 * **	-0.819 * **	-3.200 * *	-0.318 * **
	(0.025)	(0.000)	(0.244)	(0.000)	(0.098)	(0.044)	(0.257)	(1.306)	(0.039)
LIQ	0.078 * **	0.214	-0.547 * **	-0.242 * **	-0.034 * **	-0.072	-0.659 * *	-2.840 *	-0.387 * *
	(0.012)	(2.181)	(0.139)	(0.009)	(0.000)	(0.267)	(0.259)	(1.530)	(0.158)
Controls variables	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Bank FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Time FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
$α_{0}$	-5.287 * **	-28.825 * **	4.090 * *	173.681 * **	-3.014 * **	3.422 * **	2.361 * *	16.748 * *	0.959 *
	(1.424)	(9.776)	(1.966)	(5.871)	(0.810)	(0.884)	(0.949)	(6.975)	(0.548)
Obs.	24,531	24,180	24,723	24,906	22,381	12,273	23,793	23,257	23,838
R-squared	0.051	0.042	0.193	0.042	0.064	0.029	0.026	0.024	0.034
Panel (iv): Asset structure effect
	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)
	ROAA	ROAE	NIM	CIN	ZSC	NPL	PRK	LRK	ORK
COVID-19	-0.330 * **	-1.098	-0.080	-0.745	-0.337 * **	-0.248 * **	0.281 * **	-0.383	-0.068
	(0.125)	(0.668)	(0.096)	(1.209)	(0.082)	(0.054)	(0.091)	(0.474)	(0.046)
COVID* LTA	-0.001	-0.009	-0.008 * **	-0.04 * **	-0.004 *	0.001	-0.007	0.019	-0.001
	(0.002)	(0.008)	(0.001)	(0.015)	(0.003)	(0.001)	(0.005)	(0.026)	(0.001)
LTA	0.004 *	0.013	0.000	-0.252 * **	-0.007 * **	-0.019 * **	-0.003 *	-0.021 * *	-0.008 * **
	(0.002)	(0.013)	(0.002)	(0.024)	(0.002)	(0.001)	(0.002)	(0.009)	(0.001)
Controls variables	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Bank FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Time FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
$α_{0}$	-5.32 * **	-29.089 * **	3.834 * **	174.721 * **	-3.062 * **	3.659 * **	2.077 * **	16.138 * **	0.941 * **
	(0.599)	(3.257)	(0.469)	(5.88)	(0.393)	(0.374)	(0.440)	(2.308)	(0.222)
Obs.	24,531	24,180	24,723	24,906	22,381	12,273	23,793	23,257	23,838
R-squared	0.051	0.042	0.193	0.042	0.064	0.031	0.028	0.023	0.034
Panel (v): Bank diversification effect
	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)
	ROAA	ROAE	NIM	CIN	ZSC	NPL	PRK	LRK	ORK
COVID-19	-0.486 * **	-2.984 * **	-0.848 * **	3.226 * **	-0.421 * **	0.129 * *	-0.417 * **	-1.571 * **	-0.135 * **
	(0.128)	(0.714)	(0.123)	(0.910)	(0.084)	(0.059)	(0.090)	(0.520)	(0.046)
COVID-19 *DIV	0.013 * **	0.040 * **	0.008 * **	-0.045 * **	-0.034 * **	-0.003 * **	-0.003 * **	-0.146 * **	-0.003 * *
	(0.000)	(0.013)	(0.002)	(0.012)	(0.000)	(0.001)	(0.001)	(0.008)	(0.001)
DIV	0.012 * **	0.061 * **	-0.042 * **	-0.192 * **	-0.001	-0.001 * *	0.001	0.005	-0.001 * **
	(0.000)	(0.002)	(0.001)	(0.000)	(0.001)	(0.000)	(0.001)	(0.004)	(0.000)
Controls variables	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Bank FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Time FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
$α_{0}$	-5.328 * **	-29.272 * **	3.961 * *	174.194 * **	-3.037 * **	3.501 * **	2.286 * *	16.438 * *	0.952 *
	(1.424)	(9.759)	(1.978)	(5.87)	(0.808)	(0.889)	(0.944)	(6.983)	(0.547)
Obs.	24,531	24,180	24,723	24,906	22,381	12,273	23,793	23,257	23,838
R-squared	0.051	0.043	0.193	0.043	0.064	0.029	0.024	0.023	0.034

This table illustrates how a bank with diverse attributes responds to the COVID-19 pandemic. 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 0 otherwise. 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.