Conventional and Islamic Banks’ Performance in the Gulf Cooperation Council Countries; Efficiency and Determinants

Abstract

This paper investigates the cost efficiency levels of the banking sectors of the Gulf Cooperation Council (GCC) countries for the period from 2001 to 2015 and provides a comparison of conventional and Islamic banks. We obtain measures of efficiency using a stochastic frontier model and the meta-frontier approach. The evidence demonstrates that Islamic banks are less efficient and have a weaker level of production technology than conventional banks. The cost efficiency of banks varies significantly across the six Gulf countries and over time. We adopt the results drawn from the meta-frontier model that allow to take into account the differences between the studied countries, and empirically examine the bank-specific, financial, macroeconomic, and political determinants of banking efficiency. The results provide evidence of the differential effects of the selected variables on the efficiency of conventional and Islamic banks. These variables affect the performance of the two types of banks in different ways and with different magnitudes.

Appendix

Appendix 1: Bank Classification

i	Conventional banks	Short name	Country
1	AUB BI Equity	AHLI UNITED BANK	Bahrain
2	NBB BI Equity	NATL BANK BAHR	Bahrain
3	BBK BI Equity	BBK BSC	Bahrain
4	ITHMR BI Equity	ITHMAAR BANK BSC	Bahrain
5	NCB AB Equity	NATIONAL COMM	KSA
6	SAMBA AB Equity	SAMBA	KSA
7	RIBL AB Equity	RIYAD BANK	KSA
8	SABB AB Equity	SAUDI BRITISH BK	KSA
9	BSFR AB Equity	BANQUE SAUDI FR	KSA
10	ARNB AB Equity	ARAB NATL BANK	KSA
11	AAAL AB Equity	SAUDI HOLLANDI	KSA
12	SIBC AB Equity	SAUDI INVESTMENT	KSA
13	NBK KK Equity	NATL BANK KUWAIT	Kuwait
14	BOUBYAN KK Equity	BOUBYAN BANK K.S	Kuwait
15	GBK KK Equity	GULF BANK	Kuwait
16	ALMUTAHE KK Equity	AHLI UNITED BANK	Kuwait
17	BURG KK Equity	BURGAN BANK	Kuwait
18	CBK KK Equity	COMMERCIAL BK KU	Kuwait
19	ABK KK Equity	AL AHLI BANK KUW	Kuwait
20	KIB KK Equity	KUWAIT INTERNATI	Kuwait
21	WARBABAN KK Equity	WARBA BANK	Kuwait
22	BKMB OM Equity	BANKMUSCAT SAOGG	Oman
23	BKDB OM Equity	BANK DHOFAR SAOG	Oman
24	NBOB OM Equity	NATIONAL BANK OF OMAN	Oman
25	BKSB OM Equity	BANK SOHAR	Oman
26	HBMO OM Equity	HSBC BANK OMAN	Oman
27	QNBK QD Equity	QATAR NATIONAL B	Qatar
28	MARK QD Equity	MASRAF AL RAYAN	Qatar
29	CBQK QD Equity	COMMERCIAL BANK	Qatar
30	DHBK QD Equity	DOHA BANK QSC	Qatar
31	ABQK QD Equity	AL AHLI BANK	Qatar
32	KCBK QD Equity	AL KHALIJ BANK	Qatar
33	FGB UH Equity	FIRST GULF BANK	UAE
34	NBAD UH Equity	NATL BK OF ABU D	UAE
35	EMIRATES UH Equity	EMIRATES NBD PJS	UAE
36	ADCB UH Equity	ABU DHABI COMMER	UAE
37	CBD UH Equity	COMM BK OF DUBAI	UAE
38	MASQ UH Equity	MASHREQBANK	UAE
39	UNB UH Equity	UNION NATL BK/AB	UAE
40	RAKBANK UH Equity	NATL BK RAS AL-K	UAE
41	NBQ UH Equity	NAT BK UMM AL QA	UAE
42	NBF UH Equity	NATL BK FUJAIRAH	UAE
43	INVESTB UH Equity	INVEST BANK	UAE
44	CBI UH Equity	COMMERCIAL BANK	UAE
45	UAB UH Equity	UNITED ARAB BANK	UAE
46	BOS UH Equity	BANK OF SHARJAH	UAE
47	AJMANBAN UH Equity	AJMAN BANK PJSC	UAE

i	Islamic banks	Short name	Country
1	BARKA BI Equity	ALBARAKA BANKING	Bahrain
2	SALAM BI Equity	AL-SALAM BANK	Bahrain
3	BISB BI Equity	BAHRAIN ISLAMIC	Bahrain
4	KHCB BI Equity	KHALEEJI COMMERC	Bahrain
5	RJHI AB Equity	AL RAJHI BANK	KSA
6	ALINMA AB Equity	ALINMA BANK	KSA
7	ALBI AB Equity	BANK ALBILAD	KSA
8	BJAZ AB Equity	BANK AL-JAZIRA	KSA
9	KFIN KK Equity	KUWAIT FINANCE	Kuwait
10	BKNZ OM Equity	BANK NIZWA	Oman
11	BKIZ OM Equity	AL IZZ ISLAMIC B	Oman
12	QIBK QD Equity	QATAR ISLAMIC BA	Qatar
13	QIIK QD Equity	QATAR INTERNATIO	Qatar
14	DIB UH Equity	DUBAI ISLAMIC	UAE
15	ADIB UH Equity	ABU DHABI ISLAMI	UAE
16	EIB UH Equity	EMIRATES ISLAMIC	UAE
17	NBS UH Equity	SHARJAH ISLAMIC	UAE

Appendix 2: Description of Variables

Dependent variables
TC	Total cost = Total interest expense + personnel expenses + other operating expenses
Output variables
Y1	Total amount of net loans
Y2	Total amount of investment
Input prices
P 1	Price of financial capital = Total interest expense/total funds
P 2	Price of labor = Personnel expenses/total assets
P 3	Price of physical capital = Other operating expenses/total fixed assets
Other variables
t	Time factor to take into account the impact of technological change on efficiency (Lang 1996; Altunbas et al. 1999)
Crisis	An indicator variable to account for the financial crisis. Crisis = 1 if year = 2008, 2009, 0 elsewhere.
d	A proxy for environmental factors for each country. Country dummy variable equals to one representing the country where a bank is located.

Appendix 3: Description of Determinants

Bank-specific variables
ln(total assets)—LNTA	This variable refers to the bank size (Favero and Papi 1995; McKillop et al. 2002). It considers the effect of size on the bank efficiency and used to confirm if it is related to economies of scale (positive sign of variable coefficient) or diseconomies of scale (negative sign of variable coefficient)
Equity/total assets—ETA	This variable indicates the level of financial capital. High equity level is considered necessary for a bank’s financial soundness and profitability
Bank nonperforming loans to total gross loans (%)—BNPL	This variable represents a proxy for asset quality (Williams and Nguyen 2005)
Net loans/total assets—NLA	This variable refers to the bank’s investment preferences. The loan risk ratio enhances the risk of bank failure. This can lead to higher costs and lower efficiency
Operating expenses/net income—OENI	The indicator for operation cost was measured as a ratio of operating expenses/net income (Fiordelisi et al. 2011; Hughes and Mester 2009). This ratio implies how a business can efficiently use their assets and revenues. A negative relation between operating efficiency and bank performance was founded (Almazari 2014; Alper and Anbar 2011; Curak et al. 2012)
Loans/deposits—LD	This variable assesses a bank’s liquidity risk. If the bank has a very high ratio, it may not have enough liquidity to cover any unanticipated fund necessities. If the bank has a very low ratio, it may not be earning as much as it could be
Bank overhead costs to total assets (%)—BOTA	This ratio determines the variation in operating cost in banking sector. Low ratio affects performance positively according to previous studies such as Hassan and Bashir (2003) and Demirguc-Kunt and Huizinga (1999)
Net interest margin (%)—NIM	Net interest margin is a performance indicator that analysis how successful a bank’s investment decisions; a negative value means that interest expenses overpass the returns generated by investments and implies then a non-optimal decision of the bank
Bank ROA—ROA	The ROA is used as an indicator of profitability where higher profitability ratio is associated with high level of bank efficiency (Andries, 2011; Cavallo and Rossi 2002; Lozano-Vivas et al. 2001; Lozano-Vivas et al. 2002)
Financial indicators
Bank concentration (%)—BCON	This variable reflects the market structure that can positively or negatively affect the bank performance. The negative relationship can be explained by the fact that concentration and restrictions generate market power and, consequently, monopolistic profits. Thus, concentration leads to a more profitability and not necessarily higher efficiency. The positive relationship can be explained by the fact that market concentration (caused by competition where banks that are more efficient dominate the less efficient ones) is a result of higher efficiency
Deposit money bank assets to GDP (%)—DMBAGDP	This variable indicates the level of financial development. Higher levels of financial depth could contribute to the better performance, help to reduce costs of bank operations and lead to higher efficiency levels
Foreign banks among total banks (%)—FBTB	This variable indicates the average level of openness measured by the share of foreign banks (where foreigners own 50% or more of its shares) in the number of the total banks
Market capitalization of listed domestic companies (% of GDP)—CAP	Market capitalization is the share price times the number of shares outstanding for listed domestic companies. Bourke (1989) showed that market capitalization has a positive relation with the bank performance
Domestic credit to private sector (% of GDP)—DCPSGDP	Domestic credit to private sector reflects the economic development and prosperity as the increasing role of private sector in the national economy or GDP of a country
Macroeconomic indicators
GDP growth (annual  %)—GDPGR	This variable reflects the level of economic development. Bikker and Hu (2002) and Demirguc-Kunt and Huizinga (1999) have reported a positive association between GDP and the performance of banks
Inflation, GDP deflator (annual %)—INF	Inflation is a sign of macroeconomic stability. In stable macroeconomic conditions, banks have a better performance. In contrast, in inflationary conditions, the ability of banks to manage the interest rate risk can affect cost and lead to lower efficiency
Foreign direct investment, net inflows (% of GDP)—FDI	Foreign direct investment are the net inflows of investment to acquire a lasting management interest (10% or more of voting stock) in a firm operating in an economy other than that of the investor
Trade (% of GDP)—TRADE	This variable is an indicator of trade liberalization. Trade is the amount of exports and imports (goods and services) and it is given as a share of GDP
Broad money (% of GDP)—BMGDP	This variable reflects the monetary depth and size of financial sector. Broad money is the sum of currency outside banks; demand deposits other than those of the central government; the time, savings, and foreign currency deposits of resident sectors other than the central government; bank and traveler’s checks; and other securities
Indicators of political environment
Control of corruption—CORR	Control of corruption captures perceptions of the extent to which public power is exercised for private gain, as well as “capture” of the state by elites and private interests
Government effectiveness—GOVEFF	Government effectiveness captures perceptions of the quality of public services, the quality of the civil service and the degree of its independence from political pressures, the quality of policy formulation and implementation, and the credibility of the government’s commitment to such policies
Rule of law—RL	Rule of law captures perceptions of the extent to which agents have confidence in and abide by the rules of society, and in particular the quality of contract enforcement, property rights, the police, and the courts, as well as the likelihood of crime and violence (Source of definition: Worldwide Governance Indicators, Worldbank)

Appendix 4: Summary Statistics of Inputs and Outputs by Bank Type

Variable	Obs.	Mean	Std. dev.	Min.	Max.
Conventional banks
TCa	640	4.2863	4.5165	0.1904	26.5706
Y a1	640	92.6352	115.0380	0.5823	894.2187
Y a2	640	13,328.39	16,264.18	72.30175	113,683.7
P1	640	0.0211	0.0126	0.0017	0.0711
P2	640	0.0085	0.0038	0.0003	0.0466
P3	640	3.6215	21.2416	0.0484	316.4638
Assetsa	640	154.3871	183.6544	4.6612	1240.3870
Islamic banks
TCa	191	3.3631	3.9867	0.1109	17.7642
Y a1	191	68.1184	85.1878	0.0319	421.6103
Y a2	191	10,286.69	11,548.74	95.24152	56,952.46
P1	191	0.0143	0.0124	0.0004	0.0452
P2	191	0.0108	0.0045	0.0039	0.0351
P3	191	2.9863	9.5509	0.0835	53.8579
Assetsa	191	117.5680	132.2534	2.3752	632.6455
All banks
TCa	831	4.0741	4.4152	0.1109	26.5706
Y a1	831	87.0002	109.3441	0.0319	894.2187
Y a2	831	12,629.28	15,356.51	72.30175	113,683.7
P1	831	0.0195	0.0129	0.0004	0.0711
P2	831	0.0090	0.0041	0.0003	0.0466
P3	831	3.4755	19.1919	0.0484	316.4638
Assetsa	831	145.9245	173.8144	2.3752	1240.3870

1. ^aVariables are in millions of dollars and adjusted for inflation

Appendix 5: Cost Efficiency Scores over Countries and Time

Year	Bahrain	KSA	Kuwait	Oman	Qatar	UAE	Total
Conventional banks
2001	0.8795	0.9462	0.8947	0.8699	0.8862	0.8292	0.8797
2002	0.8742	0.9437	0.8901	0.8642	0.8812	0.8164	0.8713
2003	0.8686	0.9411	0.8853	0.8583	0.8761	0.8140	0.8660
2004	0.8627	0.9384	0.8803	0.8522	0.8708	0.8063	0.8603
2005	0.8784	0.9355	0.8751	0.8459	0.8652	0.7983	0.8567
2006	0.8730	0.9326	0.8812	0.8393	0.8808	0.7901	0.8562
2007	0.8674	0.9009	0.8761	0.8402	0.8514	0.7797	0.8425
2008	0.8615	0.8966	0.8708	0.8334	0.8452	0.7709	0.8359
2009	0.8555	0.8921	0.8652	0.8263	0.8387	0.7617	0.8291
2010	0.8492	0.8875	0.8595	0.8190	0.8321	0.7523	0.8221
2011	0.8426	0.8826	0.8536	0.8115	0.8252	0.7426	0.8148
2012	0.8358	0.8776	0.8474	0.8036	0.8181	0.7326	0.8073
2013	0.8287	0.8724	0.8557	0.7955	0.8107	0.7382	0.8066
2014	0.8214	0.8670	0.8497	0.7871	0.8031	0.7283	0.7989
2015	0.8138	0.8614	0.8435	0.7785	0.7953	0.7180	0.7909
Islamic banks
2001	0.9803	0.8790	0.9209		0.8057	0.8251	0.8606
2002	0.9787	0.8703	0.9149		0.7921	0.8133	0.8509
2003	0.9771	0.8611	0.9085		0.7776	0.8009	0.8406
2004	0.9753	0.8513	0.9016		0.7624	0.8321	0.8433
2005	0.9733	0.8410	0.8942		0.7462	0.8211	0.8326
2006	0.6888	0.8756	0.8863		0.7292	0.8096	0.7905
2007	0.6715	0.8670	0.8779		0.7113	0.7975	0.7774
2008	0.6821	0.8579	0.8689		0.6924	0.7849	0.7639
2009	0.6645	0.8482	0.8593		0.6726	0.7717	0.7496
2010	0.6464	0.8381	0.8490		0.6519	0.7580	0.7415
2011	0.6279	0.8271	0.8380		0.6303	0.7437	0.7262
2012	0.6091	0.8155	0.8264		0.6078	0.7289	0.7104
2013	0.5899	0.8033	0.8139		0.5844	0.6412	0.6771
2014	0.5704	0.7905	0.8007	0.5900	0.5601	0.6219	0.6507
2015	0.5508	0.7770	0.7867	0.5717	0.5351	0.7450	0.6534

Appendix 6: Meta-Cost Efficiency Scores over Countries and Time

Year	Bahrain	KSA	Kuwait	Oman	Qatar	UAE	Total
Conventional banks
2001	0.3529	0.7472	0.6343	0.6035	0.5099	0.6019	0.6057
2002	0.3730	0.7857	0.6974	0.6760	0.5637	0.6372	0.6515
2003	0.3829	0.8089	0.7407	0.7121	0.5888	0.6535	0.6762
2004	0.3992	0.8329	0.7622	0.7080	0.5962	0.6994	0.7019
2005	0.4431	0.7977	0.7843	0.7382	0.6171	0.7095	0.7049
2006	0.3865	0.8465	0.7512	0.7746	0.6264	0.7055	0.7045
2007	0.4189	0.8406	0.7338	0.7762	0.6251	0.6827	0.6991
2008	0.4332	0.8656	0.7244	0.7709	0.6220	0.7071	0.7098
2009	0.4135	0.8631	0.7673	0.7598	0.6286	0.6929	0.7104
2010	0.4096	0.7832	0.7701	0.6997	0.6204	0.6786	0.6842
2011	0.4052	0.7657	0.7945	0.7360	0.6185	0.6221	0.6712
2012	0.3873	0.7825	0.7735	0.6799	0.6007	0.6407	0.6660
2013	0.3677	0.7563	0.7528	0.6360	0.5901	0.6176	0.6443
2014	0.3450	0.7155	0.7127	0.6031	0.5624	0.5737	0.6067
2015	0.3170	0.6582	0.6911	0.5439	0.5361	0.5304	0.5669
Islamic banks
2001	0.9432	0.8098	0.7452		0.8033	0.6902	0.7761
2002	0.8321	0.7678	0.7589		0.7690	0.6800	0.7449
2003	0.7632	0.7696	0.7199		0.7434	0.6323	0.7118
2004	0.7731	0.7902	0.6553		0.7356	0.6163	0.6945
2005	0.8509	0.8057	0.6224		0.6160	0.6567	0.6943
2006	0.6504	0.6435	0.4842		0.6075	0.6076	0.6162
2007	0.5976	0.6721	0.4993		0.5353	0.5615	0.5865
2008	0.6219	0.7269	0.4806		0.5575	0.6083	0.6212
2009	0.5124	0.6727	0.4881		0.5829	0.5629	0.5695
2010	0.4786	0.5928	0.4367		0.5321	0.4953	0.5178
2011	0.4102	0.6098	0.4489		0.5070	0.4803	0.4976
2012	0.3917	0.6287	0.4544		0.5117	0.4506	0.4908
2013	0.4268	0.6056	0.3992		0.5165	0.3926	0.4814
2014	0.4411	0.5966	0.3901	0.2831	0.4669	0.3951	0.4516
2015	0.3585	0.5696	0.4307	0.3969	0.4534	0.4972	0.4559

Appendix 7: Technology Gap Ratios over Countries and Time

Year	Bahrain	KSA	Kuwait	Oman	Qatar	UAE	Total
Conventional banks
2001	0.4010	0.7896	0.7134	0.6922	0.5787	0.7202	0.6870
2002	0.4268	0.8329	0.7865	0.7804	0.6414	0.7757	0.7463
2003	0.4412	0.8600	0.8379	0.8286	0.6742	0.7982	0.7789
2004	0.4635	0.8882	0.8662	0.8359	0.6846	0.8626	0.8149
2005	0.5031	0.8545	0.8973	0.8781	0.7108	0.8848	0.8239
2006	0.4461	0.9082	0.8492	0.9278	0.7055	0.8892	0.8228
2007	0.4830	0.9346	0.8315	0.9263	0.7386	0.8726	0.8298
2008	0.5023	0.9656	0.8263	0.9245	0.7401	0.9121	0.8484
2009	0.4829	0.9669	0.8820	0.9174	0.7546	0.9075	0.8565
2010	0.4822	0.8829	0.8965	0.8525	0.7490	0.9032	0.8348
2011	0.4812	0.8674	0.9311	0.9017	0.7507	0.8549	0.8287
2012	0.4641	0.8915	0.9153	0.8467	0.7355	0.8785	0.8279
2013	0.4447	0.8641	0.8865	0.7982	0.7291	0.8410	0.8011
2014	0.4209	0.8246	0.8443	0.7683	0.7022	0.7950	0.7629
2015	0.3907	0.7648	0.8247	0.6935	0.6757	0.7481	0.7201
Islamic banks
2001	0.9621	0.9142	0.8092		0.9971	0.8205	0.8950
2002	0.8502	0.8821	0.8295		0.9713	0.8257	0.8737
2003	0.7811	0.8955	0.7924		0.9567	0.7783	0.8458
2004	0.7927	0.9332	0.7268		0.9659	0.7340	0.8253
2005	0.8742	0.9623	0.6960		0.8234	0.8190	0.8417
2006	0.9384	0.7503	0.5463		0.8325	0.7395	0.7873
2007	0.8631	0.7733	0.5688		0.7572	0.6754	0.7457
2008	0.9202	0.8587	0.5531		0.8087	0.7405	0.8135
2009	0.7916	0.8038	0.5681		0.8704	0.6860	0.7593
2010	0.7589	0.7177	0.5144		0.8218	0.6103	0.7003
2011	0.7018	0.7507	0.5356		0.8101	0.6314	0.6994
2012	0.6935	0.7881	0.5499		0.8489	0.6018	0.7054
2013	0.7285	0.7726	0.4904		0.8861	0.5853	0.7159
2014	0.7639	0.7727	0.4872	0.6497	0.8415	0.5959	0.7127
2015	0.6762	0.7486	0.5475	0.7984	0.8570	0.6621	0.7254

Appendix 8: Summary Statistics of Determinant Variables by Bank Type

Variable	Obs.	Mean	Std. dev.	Min.	Max.
Conventional banks
Bank-specific variables
TAa	640	17,267.27	21,948.09	442.348	147,916.2
ETA	640	0.1470	0.0663	0.0077	0.9432
BNPL	640	5.1527	3.7965	1.0803	15.7000
NLA	640	0.6004	0.1112	0.0431	0.8360
OENI	640	2.1698	24.9667	− 75.4560	583.2895
LD	640	1.7193	11.0148	0.1330	255.2769
BOTA	640	1.3353	0.3461	0.8500	2.6800
NIM	640	2.9780	0.4873	1.5800	4.5600
ROA	640	2.0264	0.7849	− 0.9200	3.9800
Financial indicators
BCON	640	70.2777	16.8617	44.0900	100.0000
DMBAGDP	640	61.4311	18.2719	30.8100	101.2300
FBTB	640	14.0094	17.5701	0.0000	71.0000
CAP	640	65.7255	32.2273	16.3400	156.2500
DCPSGDP	640	51.3583	15.8335	27.2571	98.5991
Macroeconomic indicators
GDPGR	640	5.2415	4.9782	− 7.0761	26.1703
INF	640	4.4296	11.9845	− 27.2060	33.7515
FDI	640	2.5626	2.6934	− 4.6995	15.7506
TRADE	640	110.5459	30.9720	63.9514	180.4748
BMGDP	640	59.5627	14.9867	30.5117	99.3470
Political indicators
CORR	640	0.5543	0.5276	− 0.3746	1.7229
GOVEFF	640	0.5074	0.4804	− 0.3228	1.5369
RL	640	0.4720	0.2260	0.0349	1.0536
Islamic banks
Bank-specific variables
TAa	191	13,280.86	16,229.58	310.6817	84,091.24
ETA	191	0.1866	0.1152	0.0634	0.7748
BNPL	191	4.4881	3.5615	1.0803	15.7000
NLA	191	0.5017	0.1876	0.0019	0.8829
OENI	191	2.1610	6.0535	− 4.4091	56.8798
LD	191	6.5705	29.5596	0.0633	166.6500
BOTA	191	1.2577	0.2105	0.8500	1.9200
NIM	191	2.8114	0.4527	1.5800	3.6900
ROA	191	2.0081	0.7612	0.1800	3.9800
Financial indicators
BCON	191	69.9682	16.8444	44.0900	100.0000
DMBAGDP	191	63.2900	18.4872	37.5600	101.2300
FBTB	191	21.0890	25.1178	0.0000	71.0000
CAP	191	69.5625	31.2928	20.3842	156.2500
DCPSGDP	191	51.5893	15.5693	27.2571	98.5991
Macroeconomic indicators
GDPGR	191	5.6024	4.8227	− 7.0761	26.1703
INF	191	4.1198	11.2325	− 27.2060	30.5427
FDI	191	2.9190	3.1510	− 4.6995	15.7506
TRADE	191	111.5761	29.1894	63.9514	180.4748
BMGDP	191	61.9442	13.0530	40.8092	99.3470
Political indicators
CORR	191	0.5365	0.5277	− 0.3746	1.7229
GOVEFF	191	0.5103	0.4476	− 0.3228	1.5369
RL	191	0.4554	0.2286	0.0349	1.0536
All banks
Bank-specific variables
TAa	831	16,351.02	20,832.14	310.6817	147,916.2
ETA	831	0.1561	0.0819	0.0077	0.9432
BNPL	831	4.9999	3.7522	1.0803	15.7000
NLA	831	0.5777	0.1389	0.0019	0.8829
OENI	831	2.1678	22.0971	− 75.4560	583.2895
LD	831	2.8343	17.2510	0.0633	255.2769
BOTA	831	1.3175	0.3216	0.8500	2.6800
NIM	831	2.9397	0.4844	1.5800	4.5600
ROA	831	2.0222	0.7791	− 0.9200	3.9800
Financial indicators
BCON	831	70.2066	16.8481	44.0900	100.0000
DMBAGDP	831	61.8583	18.3271	30.8100	101.2300
FBTB	831	15.6366	19.7731	0.0000	71.0000
CAP	831	66.6074	32.0370	16.3400	156.2500
DCPSGDP	831	51.4114	15.7641	27.2571	98.5991
Macroeconomic indicators
GDPGR	831	5.3244	4.9424	− 7.0761	26.1703
INF	831	4.3584	11.8100	− 27.2060	33.7515
FDI	831	2.6445	2.8072	− 4.6995	15.7506
TRADE	831	110.7827	30.5573	63.9514	180.4748
BMGDP	831	60.1100	14.5919	30.5117	99.3470
Political indicators
CORR	831	0.5502	0.5274	− 0.3746	1.7229
GOVEFF	831	0.5081	0.4728	− 0.3228	1.5369
RL	831	0.4682	0.2266	0.0349	1.0536

1. ^aVariables are expressed in millions of dollars