Table 5
Panel regressions of bank efficiency as measured by CIR (2005–2015)
Variable
All banks
Conventional banks
Islamic banks
Model 1
Model 2
Model 3
Model 4
Model 5
Model 6
Model 7
Model 8
Model 9 Model 10 Model 11 Model 12
Constant
0.1623
0.148
0.2097
0.499
1.5833
0.000***
1.6900
0.000***
0.3444
0.011**
1.5147
0.000***
2.0549
0.000***
2.2622
0.000***
0.0057
0.983
−0.7688
0.311
1.8897
0.092*
2.9361
0.066*
Deposits/Assets
0.1357
0.117
−0.0381
0.828
0.1084
0.537
−0.0961
0.601
0.2839
0.042**
−0.0218
0.909
0.0812
0.675
0.1284
0.555
0.2172
0.113
0.3122
0.428
−0.1960
0.621
−0.1550
0.678
Loans/Assets
0.1455
0.082*
0.2452
0.200
−0.7566
0.027**
−1.2127
0.001***
−0.0762
0.452
−0.8908
0.002***
−1.1659
0.004***
−1.7226
0.000***
0.3782
0.023**
0.8206
0.002***
−0.7799
0.201
−0.9185
0.137
ROA
−1.4154
0.000***
−3.2222
0.000***
−4.1264
0.000***
−1.3890
0.244
−3.0684
0.000***
−1.3816
0.161
−1.6485
0.236
0.0002
1.000
−0.1586
0.771
−2.7701
0.262
0.1049
0.961
1.9097
0.380
Other Earning Assets
0.0658
0.286
−0.0472
0.683
−0.3050
0.184
−0.9328
0.000***
0.0479
0.566
−0.0766
0.561
−0.3236
0.190
−0.7851
0.012**
0.1040
0.293
−0.2136
0.273
0.0616
0.868
0.7350
0.115
Income Diversity
0.0962
0.198
0.0832
0.379
−0.3157
0.007***
−0.3524
0.003***
0.0215
0.908
0.3623
0.119
−0.3467
0.189
0.1315
0.702
0.0131
0.889
0.0000
1.000
−0.5267
0.000***
−0.6034
0.001***
Non-Interest Income
−0.1228
0.181
−0.0134
0.916
0.3741
0.019**
0.4203
0.015**
−0.0356
0.875
−0.4153
0.144
0.3303
0.289
−0.1441
0.732
−0.1929
0.125
−0.0082
0.958
0.5066
0.005***
0.8006
0.004***
Log(Size)
0.0029
0.571
0.0030
0.764
−0.0359
0.002***
−0.0177
0.345
0.0014
0.791
−0.0236
0.026**
−0.0250
0.058*
−0.0260
0.258
0.0034
0.847
0.0318
0.346
−0.0638
0.204
−0.1618
0.142
Tier 1 Ratio
−0.0988
0.736
0.5573
0.093*
0.2032
0.610
−0.3788
0.318
−0.3676
0.460
−0.3497
0.538
−0.6575
0.495
0.7304
0.392
0.3788
0.617
Tangible Equity
0.0530
0.855
−0.5406
0.083*
−0.2862
0.440
−0.3890
0.195
−0.4054
0.242
−0.1909
0.675
1.0739
0.236
−0.5211
0.466
0.0977
0.897
Liquid Assets
0.0547
0.757
−0.7325
0.005***
−1.2551
0.000***
−0.7277
0.003***
−0.9143
0.002***
−1.6240
0.000***
0.6060
0.015**
−0.7304
0.088*
-0.8284
0.098*
Funding Fragility
−0.1151
0.326
0.2625
0.101
0.1985
0.325
−0.1186
0.344
0.0463
0.809
0.1970
0.426
−0.4144
0.097*
0.1628
0.572
−0.1957
0.596
Equity Volatility
−0.1195
0.006***
−0.0665
0.132
−0.1165
0.018**
−0.0691
0.185
0.0098
0.841
0.0696
0.180
Log(Z)
−0.0472
0.004***
0.0068
0.720
−0.0997
0.000***
−0.0395
0.276
0.0138
0.410
0.0374
0.106
Ownership Concentration
0.0234
0.659
0.0185
0.756
0.0871
0.461
Government Ownership
−0.0320
0.601
0.0059
0.929
−1.6442
0.446
Foreign Ownership
0.0374
0.744
−0.1600
0.263
−2.8104
0.353
LISTED_D
−0.0293
0.376
0.0244
0.606
−0.0217
0.668
0.0603
0.278
−0.1321
0.013**
Omitted
0.0438
0.374
0.1184
0.027**
−0.0920
0.286
0.1060
0.788
ISLAMIC_D
0.0835
0.000***
0.1062
0.000***
0.0693
0.046**
0.1561
0.000***
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
(continued)
70
F. Mrad and M. Mateev
Panel regressions of bank efficiency as measured by CIR (2005–2015)
Variable
All banks
Conventional banks
Islamic banks
Model 1
Model 2
Model 3
Model 4
Model 5
Model 6
Model 7
Model 8
Model 9 Model 10 Model 11 Model 12
Constant
0.1623
0.148
0.2097
0.499
1.5833
0.000***
1.6900
0.000***
0.3444
0.011**
1.5147
0.000***
2.0549
0.000***
2.2622
0.000***
0.0057
0.983
−0.7688
0.311
1.8897
0.092*
2.9361
0.066*
Deposits/Assets
0.1357
0.117
−0.0381
0.828
0.1084
0.537
−0.0961
0.601
0.2839
0.042**
−0.0218
0.909
0.0812
0.675
0.1284
0.555
0.2172
0.113
0.3122
0.428
−0.1960
0.621
−0.1550
0.678
Loans/Assets
0.1455
0.082*
0.2452
0.200
−0.7566
0.027**
−1.2127
0.001***
−0.0762
0.452
−0.8908
0.002***
−1.1659
0.004***
−1.7226
0.000***
0.3782
0.023**
0.8206
0.002***
−0.7799
0.201
−0.9185
0.137
ROA
−1.4154
0.000***
−3.2222
0.000***
−4.1264
0.000***
−1.3890
0.244
−3.0684
0.000***
−1.3816
0.161
−1.6485
0.236
0.0002
1.000
−0.1586
0.771
−2.7701
0.262
0.1049
0.961
1.9097
0.380
Other Earning Assets
0.0658
0.286
−0.0472
0.683
−0.3050
0.184
−0.9328
0.000***
0.0479
0.566
−0.0766
0.561
−0.3236
0.190
−0.7851
0.012**
0.1040
0.293
−0.2136
0.273
0.0616
0.868
0.7350
0.115
Income Diversity
0.0962
0.198
0.0832
0.379
−0.3157
0.007***
−0.3524
0.003***
0.0215
0.908
0.3623
0.119
−0.3467
0.189
0.1315
0.702
0.0131
0.889
0.0000
1.000
−0.5267
0.000***
−0.6034
0.001***
Non-Interest Income
−0.1228
0.181
−0.0134
0.916
0.3741
0.019**
0.4203
0.015**
−0.0356
0.875
−0.4153
0.144
0.3303
0.289
−0.1441
0.732
−0.1929
0.125
−0.0082
0.958
0.5066
0.005***
0.8006
0.004***
Log(Size)
0.0029
0.571
0.0030
0.764
−0.0359
0.002***
−0.0177
0.345
0.0014
0.791
−0.0236
0.026**
−0.0250
0.058*
−0.0260
0.258
0.0034
0.847
0.0318
0.346
−0.0638
0.204
−0.1618
0.142
Tier 1 Ratio
−0.0988
0.736
0.5573
0.093*
0.2032
0.610
−0.3788
0.318
−0.3676
0.460
−0.3497
0.538
−0.6575
0.495
0.7304
0.392
0.3788
0.617
Tangible Equity
0.0530
0.855
−0.5406
0.083*
−0.2862
0.440
−0.3890
0.195
−0.4054
0.242
−0.1909
0.675
1.0739
0.236
−0.5211
0.466
0.0977
0.897
Liquid Assets
0.0547
0.757
−0.7325
0.005***
−1.2551
0.000***
−0.7277
0.003***
−0.9143
0.002***
−1.6240
0.000***
0.6060
0.015**
−0.7304
0.088*
-0.8284
0.098*
Funding Fragility
−0.1151
0.326
0.2625
0.101
0.1985
0.325
−0.1186
0.344
0.0463
0.809
0.1970
0.426
−0.4144
0.097*
0.1628
0.572
−0.1957
0.596
Equity Volatility
−0.1195
0.006***
−0.0665
0.132
−0.1165
0.018**
−0.0691
0.185
0.0098
0.841
0.0696
0.180
Log(Z)
−0.0472
0.004***
0.0068
0.720
−0.0997
0.000***
−0.0395
0.276
0.0138
0.410
0.0374
0.106
Ownership Concentration
0.0234
0.659
0.0185
0.756
0.0871
0.461
Government Ownership
−0.0320
0.601
0.0059
0.929
−1.6442
0.446
Foreign Ownership
0.0374
0.744
−0.1600
0.263
−2.8104
0.353
LISTED_D
−0.0293
0.376
0.0244
0.606
−0.0217
0.668
0.0603
0.278
−0.1321
0.013**
Omitted
0.0438
0.374
0.1184
0.027**
−0.0920
0.286
0.1060
0.788
ISLAMIC_D
0.0835
0.000***
0.1062
0.000***
0.0693
0.046**
0.1561
0.000***
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
(continued)
70
F. Mrad and M. Mateev