Non-performing loans (NPLs), liquidity creation, and moral hazard: Case of Chinese banks

China Finance and Economic Review

Table 3 Pair-wise correlation matrix

	LC_CF	LC_CNF	NPL_TL	LN_TA	AVG_LNS	MKT_POW	Z_SCR	TE_TA	ROAE	SD3_ROAA	IBR	LN_POP	GDP
LC_CF	1
LC_CNF	0.884***	1
LC_CNF	(0.000)
NPL_TL	0.134***	0.154***	1
NPL_TL	(0.002)	(0.000)
LN_TA	−0.104***	−0.101***	−0.139***	1
LN_TA	(0.009)	(0.005)	(0.000)
AVG_LNS	0.311***	0.389***	0.179***	0.046	1
AVG_LNS	(0.000)	(0.000)	(0.000)	(0.157)
MKT_POW	−0.005	0.045	0.051	0.584***	0.067**	1
MKT_POW	(0.895)	(0.214)	(0.142)	(0.000)	(0.041)
Z_SCR	−0.041	−0.027	−0.069**	0.236***	−0.099***	0.019	1
Z_SCR	(0.304)	(0.464)	(0.047)	(0.000)	(0.003)	(0.525)
TE_TA	−0.264***	−0.259***	0.077**	−0.434***	−0.162***	−0.106***	−0.147***	1
TE_TA	(0.000)	(0.000)	(0.025)	(0.000)	(0.000)	(0.001)	(0.000)
ROAE	0.292***	0.226***	−0.153***	0.267***	−0.010	0.087***	0.300***	−0.451***	1
ROAE	(0.000)	(0.000)	(0.000)	(0.000)	(0.755)	(0.004)	(0.000)	(0.000)
SD3_ROAA	−0.001	−0.040	0.038	−0.427***	−0.091**	−0.156***	−0.302***	0.436***	−0.208***	1
SD3_ROAA	(0.989)	(0.368)	(0.374)	(0.000)	(0.018)	(0.000)	(0.000)	(0.000)	(0.000)
IBR	−0.267***	−0.269***	−0.185***	0.171***	−0.272***	−0.071**	0.217***	−0.010	0.092***	−0.175***	1
IBR	(0.000)	(0.000)	(0.000)	(0.000)	(0.000)	(0.018)	(0.000)	(0.738)	(0.002)	(0.000)
LN_POP	−0.311***	−0.305***	−0.309***	0.239***	−0.352***	−0.106***	0.256***	0.047	0.075**	−0.215***	0.668***	1
LN_POP	(0.000)	(0.000)	(0.000)	(0.000)	(0.000)	(0.000)	(0.000)	(0.124)	(0.014)	(0.000)	(0.000)
GDP	0.303***	0.294***	0.271***	−0.220***	0.292***	0.083***	−0.227***	−0.053*	−0.048	0.166***	−0.545***	−0.829***	1
GDP	(0.000)	(0.000)	(0.000)	(0.000)	(0.000)	(0.006)	(0.000)	(0.077)	(0.115)	(0.000)	(0.000)	(0.000)

Table 3 reports the pair-wise correlation matrix of the variables used in this study’s analysis; parentheses denote p values, and *, **, and *** represent levels of statistical significance at 10, 5, and 1 % levels, respectively