T able 1. Open in new tab Basic...

	Bank Private Credit	Net Interest Margin	Bank Claims On Dom. Fin. Sector	Bank Credit To Government	Bank Domestic Deposits	Bank Non-Deposit Funding	Insurance Premiums (Life)	Insurance Premiums (Non-Life)
Panel A
Log Initial GDPPC	0.372***	−0.261***	0.822***	0.285***	0.288***	0.380***	0.619***	0.267***
Log GDPPC minus Log Initial GDPPC	0.840***	0.120	−0.286	1.634***	1.535***	−0.271	0.745**	−0.155
Interaction	7.95^e−05	−0.0837***	0.223***	−0.183***	−0.0964***	0.146***	0.133***	0.0686***
Log Population	0.0721***	−0.0660***	0.243***	0.0940***	0.0367***	0.0717***	0.0424**	−0.0496***
Log Population density	0.0193***	−0.0293***	0.339***	0.200***	0.0870***	0.0452***	0.0999***	−0.0403***
Fuel dummy	−0.272***	0.00729	−0.256***	−0.262***	−0.163***	−0.0551	−0.687***	−0.202***
Offshore dummy	0.331***	0.105**	−0.634***	0.166***	0.333***	0.428***	−0.130	0.107**
Transition dummy	−0.0350	0.187***	−0.102	−0.0864	−0.170***	0.220***	−0.779***	−0.0863*
Constant	0.285***	3.709***	−8.413***	−1.285***	0.815***	−0.441***	−6.126***	−1.708***
Observations	4,075	1,785	1,643	4,003	4,097	3,983	2,138	2,308
Pseudo R²	0.388	0.294	0.247	0.141	0.401	0.285	0.384	0.357
Panel B
Log initial GDPPC	0.317***	0.734***	0.672***	0.415***	1.010***	0.159***	1.030***	−0.134***
Log GDPPC minus Log initial GDPPC	−3.501**	−1.423***	1.853***	0.253	2.332***	0.0639	−0.426	−2.144***
Interaction	0.566***	0.472***	−0.0452	0.0900	−0.0578	−0.0207	0.239***	0.167**
Log population	−0.0994	0.135***	0.462***	0.118***	0.112***	0.0973***	0.122***	−0.243***
Log population density	−0.152***	0.00934	0.0661***	0.0756***	−0.131***	0.0571***	−0.0115	−0.253***
Fuel dummy	0.360**	−0.224**	−0.0575	0.0716	−0.785***	−0.357***	0.0507	−0.00290
Offshore dummy	−0.278	0.960***	−0.592***	0.391***	−0.0158	−0.345***	0.150	−0.0280
Transition dummy	−1.834***	−1.421***	0.722***	−0.669***	−0.504**	−0.118	−0.499***	−0.474***
Constant	0.247	−5.554***	−4.359***	−0.975***	−6.488***	1.579***	−7.983***	4.601***
Observations	568	613	1,682	1,818	889	978	985	1,198
Pseudo R²	0.169	0.383	0.375	0.274	0.353	0.0808	0.382	0.138

Bank Private Credit

Net Interest Margin

Bank Claims On Dom. Fin. Sector

Bank Credit To Government

Bank Domestic Deposits

Bank Non-Deposit Funding

Insurance Premiums (Life)

Insurance Premiums (Non-Life)

Panel A

Log Initial GDPPC

0.372***

−0.261***

0.822***

0.285***

0.288***

0.380***

0.619***

0.267***

Log GDPPC minus Log Initial GDPPC

0.840***

0.120

−0.286

1.634***

1.535***

−0.271

0.745**

−0.155

Interaction

7.95^e−05

−0.0837***

0.223***

−0.183***

−0.0964***

0.146***

0.133***

0.0686***

Log Population

0.0721***

−0.0660***

0.243***

0.0940***

0.0367***

0.0717***

0.0424**

−0.0496***

Log Population density

0.0193***

−0.0293***

0.339***

0.200***

0.0870***

0.0452***

0.0999***

−0.0403***

Fuel dummy

−0.272***

0.00729

−0.256***

−0.262***

−0.163***

−0.0551

−0.687***

−0.202***

Offshore dummy

0.331***

0.105**

−0.634***

0.166***

0.333***

0.428***

−0.130

0.107**

Transition dummy

−0.0350

0.187***

−0.102

−0.0864

−0.170***

0.220***

−0.779***

−0.0863*

Constant

0.285***

3.709***

−8.413***

−1.285***

0.815***

−0.441***

−6.126***

−1.708***

Observations

4,075

1,785

1,643

4,003

4,097

3,983

2,138

2,308

Pseudo R²

0.388

0.294

0.247

0.141

0.401

0.285

0.384

0.357

Panel B

Log initial GDPPC

0.317***

0.734***

0.672***

0.415***

1.010***

0.159***

1.030***

−0.134***

Log GDPPC minus Log initial GDPPC

−3.501**

−1.423***

1.853***

0.253

2.332***

0.0639

−0.426

−2.144***

Interaction

0.566***

0.472***

−0.0452

0.0900

−0.0578

−0.0207

0.239***

0.167**

Log population

−0.0994

0.135***

0.462***

0.118***

0.112***

0.0973***

0.122***

−0.243***

Log population density

−0.152***

0.00934

0.0661***

0.0756***

−0.131***

0.0571***

−0.0115

−0.253***

Fuel dummy

0.360**

−0.224**

−0.0575

0.0716

−0.785***

−0.357***

0.0507

−0.00290

Offshore dummy

−0.278

0.960***

−0.592***

0.391***

−0.0158

−0.345***

0.150

−0.0280

Transition dummy

−1.834***

−1.421***

0.722***

−0.669***

−0.504**

−0.118

−0.499***

−0.474***

Constant

0.247

−5.554***

−4.359***

−0.975***

−6.488***

1.579***

−7.983***

4.601***

Observations

568

613

1,682

1,818

889

978

985

1,198

Pseudo R²

0.169

0.383

0.375

0.274

0.353

0.0808

0.382

0.138

	Bank Private Credit	Net Interest Margin	Bank Claims On Dom. Fin. Sector	Bank Credit To Government	Bank Domestic Deposits	Bank Non-Deposit Funding	Insurance Premiums (Life)	Insurance Premiums (Non-Life)
Panel A
Log Initial GDPPC	0.372***	−0.261***	0.822***	0.285***	0.288***	0.380***	0.619***	0.267***
Log GDPPC minus Log Initial GDPPC	0.840***	0.120	−0.286	1.634***	1.535***	−0.271	0.745**	−0.155
Interaction	7.95^e−05	−0.0837***	0.223***	−0.183***	−0.0964***	0.146***	0.133***	0.0686***
Log Population	0.0721***	−0.0660***	0.243***	0.0940***	0.0367***	0.0717***	0.0424**	−0.0496***
Log Population density	0.0193***	−0.0293***	0.339***	0.200***	0.0870***	0.0452***	0.0999***	−0.0403***
Fuel dummy	−0.272***	0.00729	−0.256***	−0.262***	−0.163***	−0.0551	−0.687***	−0.202***
Offshore dummy	0.331***	0.105**	−0.634***	0.166***	0.333***	0.428***	−0.130	0.107**
Transition dummy	−0.0350	0.187***	−0.102	−0.0864	−0.170***	0.220***	−0.779***	−0.0863*
Constant	0.285***	3.709***	−8.413***	−1.285***	0.815***	−0.441***	−6.126***	−1.708***
Observations	4,075	1,785	1,643	4,003	4,097	3,983	2,138	2,308
Pseudo R²	0.388	0.294	0.247	0.141	0.401	0.285	0.384	0.357
Panel B
Log initial GDPPC	0.317***	0.734***	0.672***	0.415***	1.010***	0.159***	1.030***	−0.134***
Log GDPPC minus Log initial GDPPC	−3.501**	−1.423***	1.853***	0.253	2.332***	0.0639	−0.426	−2.144***
Interaction	0.566***	0.472***	−0.0452	0.0900	−0.0578	−0.0207	0.239***	0.167**
Log population	−0.0994	0.135***	0.462***	0.118***	0.112***	0.0973***	0.122***	−0.243***
Log population density	−0.152***	0.00934	0.0661***	0.0756***	−0.131***	0.0571***	−0.0115	−0.253***
Fuel dummy	0.360**	−0.224**	−0.0575	0.0716	−0.785***	−0.357***	0.0507	−0.00290
Offshore dummy	−0.278	0.960***	−0.592***	0.391***	−0.0158	−0.345***	0.150	−0.0280
Transition dummy	−1.834***	−1.421***	0.722***	−0.669***	−0.504**	−0.118	−0.499***	−0.474***
Constant	0.247	−5.554***	−4.359***	−0.975***	−6.488***	1.579***	−7.983***	4.601***
Observations	568	613	1,682	1,818	889	978	985	1,198
Pseudo R²	0.169	0.383	0.375	0.274	0.353	0.0808	0.382	0.138

Table 1.

Open in new tab

Basic Benchmark Regressions

	Bank Private Credit	Net Interest Margin	Bank Claims On Dom. Fin. Sector	Bank Credit To Government	Bank Domestic Deposits	Bank Non-Deposit Funding	Insurance Premiums (Life)	Insurance Premiums (Non-Life)
	1	2	3	4	5	6	7	8
Panel A
Log Initial GDPPC	0.372***	−0.261***	0.822***	0.285***	0.288***	0.380***	0.619***	0.267***
Log GDPPC minus Log Initial GDPPC	0.840***	0.120	−0.286	1.634***	1.535***	−0.271	0.745**	−0.155
Interaction	7.95^e−05	−0.0837***	0.223***	−0.183***	−0.0964***	0.146***	0.133***	0.0686***
Log Population	0.0721***	−0.0660***	0.243***	0.0940***	0.0367***	0.0717***	0.0424**	−0.0496***
Log Population density	0.0193***	−0.0293***	0.339***	0.200***	0.0870***	0.0452***	0.0999***	−0.0403***
Fuel dummy	−0.272***	0.00729	−0.256***	−0.262***	−0.163***	−0.0551	−0.687***	−0.202***
Offshore dummy	0.331***	0.105**	−0.634***	0.166***	0.333***	0.428***	−0.130	0.107**
Transition dummy	−0.0350	0.187***	−0.102	−0.0864	−0.170***	0.220***	−0.779***	−0.0863*
Constant	0.285***	3.709***	−8.413***	−1.285***	0.815***	−0.441***	−6.126***	−1.708***
Observations	4,075	1,785	1,643	4,003	4,097	3,983	2,138	2,308
Pseudo R²	0.388	0.294	0.247	0.141	0.401	0.285	0.384	0.357
Panel B
Log initial GDPPC	0.317***	0.734***	0.672***	0.415***	1.010***	0.159***	1.030***	−0.134***
Log GDPPC minus Log initial GDPPC	−3.501**	−1.423***	1.853***	0.253	2.332***	0.0639	−0.426	−2.144***
Interaction	0.566***	0.472***	−0.0452	0.0900	−0.0578	−0.0207	0.239***	0.167**
Log population	−0.0994	0.135***	0.462***	0.118***	0.112***	0.0973***	0.122***	−0.243***
Log population density	−0.152***	0.00934	0.0661***	0.0756***	−0.131***	0.0571***	−0.0115	−0.253***
Fuel dummy	0.360**	−0.224**	−0.0575	0.0716	−0.785***	−0.357***	0.0507	−0.00290
Offshore dummy	−0.278	0.960***	−0.592***	0.391***	−0.0158	−0.345***	0.150	−0.0280
Transition dummy	−1.834***	−1.421***	0.722***	−0.669***	−0.504**	−0.118	−0.499***	−0.474***
Constant	0.247	−5.554***	−4.359***	−0.975***	−6.488***	1.579***	−7.983***	4.601***
Observations	568	613	1,682	1,818	889	978	985	1,198
Pseudo R²	0.169	0.383	0.375	0.274	0.353	0.0808	0.382	0.138

	Bank Private Credit	Net Interest Margin	Bank Claims On Dom. Fin. Sector	Bank Credit To Government	Bank Domestic Deposits	Bank Non-Deposit Funding	Insurance Premiums (Life)	Insurance Premiums (Non-Life)
	1	2	3	4	5	6	7	8
Panel A
Log Initial GDPPC	0.372***	−0.261***	0.822***	0.285***	0.288***	0.380***	0.619***	0.267***
Log GDPPC minus Log Initial GDPPC	0.840***	0.120	−0.286	1.634***	1.535***	−0.271	0.745**	−0.155
Interaction	7.95^e−05	−0.0837***	0.223***	−0.183***	−0.0964***	0.146***	0.133***	0.0686***
Log Population	0.0721***	−0.0660***	0.243***	0.0940***	0.0367***	0.0717***	0.0424**	−0.0496***
Log Population density	0.0193***	−0.0293***	0.339***	0.200***	0.0870***	0.0452***	0.0999***	−0.0403***
Fuel dummy	−0.272***	0.00729	−0.256***	−0.262***	−0.163***	−0.0551	−0.687***	−0.202***
Offshore dummy	0.331***	0.105**	−0.634***	0.166***	0.333***	0.428***	−0.130	0.107**
Transition dummy	−0.0350	0.187***	−0.102	−0.0864	−0.170***	0.220***	−0.779***	−0.0863*
Constant	0.285***	3.709***	−8.413***	−1.285***	0.815***	−0.441***	−6.126***	−1.708***
Observations	4,075	1,785	1,643	4,003	4,097	3,983	2,138	2,308
Pseudo R²	0.388	0.294	0.247	0.141	0.401	0.285	0.384	0.357
Panel B
Log initial GDPPC	0.317***	0.734***	0.672***	0.415***	1.010***	0.159***	1.030***	−0.134***
Log GDPPC minus Log initial GDPPC	−3.501**	−1.423***	1.853***	0.253	2.332***	0.0639	−0.426	−2.144***
Interaction	0.566***	0.472***	−0.0452	0.0900	−0.0578	−0.0207	0.239***	0.167**
Log population	−0.0994	0.135***	0.462***	0.118***	0.112***	0.0973***	0.122***	−0.243***
Log population density	−0.152***	0.00934	0.0661***	0.0756***	−0.131***	0.0571***	−0.0115	−0.253***
Fuel dummy	0.360**	−0.224**	−0.0575	0.0716	−0.785***	−0.357***	0.0507	−0.00290
Offshore dummy	−0.278	0.960***	−0.592***	0.391***	−0.0158	−0.345***	0.150	−0.0280
Transition dummy	−1.834***	−1.421***	0.722***	−0.669***	−0.504**	−0.118	−0.499***	−0.474***
Constant	0.247	−5.554***	−4.359***	−0.975***	−6.488***	1.579***	−7.983***	4.601***
Observations	568	613	1,682	1,818	889	978	985	1,198
Pseudo R²	0.169	0.383	0.375	0.274	0.353	0.0808	0.382	0.138

Notes: This table displays the median regression results of equation (1) using a panel of country-year data for the 1980–2010 period. GDPPC stands for gross domestic product per capita.

Source: Authors' analysis based on data described in the text.

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