Skip to main content
Swiss Journal of Economics and Statistics

Table 8 Decomposing the effect of control variables on the estimated difference in CIR and ROA between largest non-SIB and G-SIBs

From: Scale effects on efficiency and profitability in the Swiss banking sector

 

(1)

(2)

(3)

(4)

(5)

(6)

Mean Q5

Mean G-SIB

CIR, 2010–2019

ROA, 2010–2019

Coefficient

Implied effect on G-SIB vs. Q5

Coefficient

Implied effect on G-SIB vs. Q5

Deposits/Assets (%)

66.44

44.82

0.054

1.160

0.000

0.002

Mortgages/Assets (%)

69.01

14.45

0.012

0.654

− 0.002

− 0.118

Trading/Assets (%)

0.64

15.57

0.273

− 4.074

− 0.032

0.482

Net Int. Inc./Op. Inc. (%)

68.83

27.36

− 0.114

− 4.722

0.000

0.003

Commission Inc./Op. Inc. (%)

23.33

58.91

0.119

− 4.230

0.007

− 0.244

Trading Inc./Op. Inc. (%)

6.99

11.88

− 0.324

1.587

0.005

− 0.025

Capital/Assets (%)

8.17

4.85

− 1.379

− 4.581

0.027

0.090

RWA/Assets (%)

50.89

28.02

0.115

2.629

− 0.002

− 0.046

Domestic/Total Assets (%)

95.19

23.64

− 0.121

− 8.682

0.005

0.358

HHI of Mtg Holdings (/1000)

5.97

1.05

− 0.637

− 3.138

0.008

0.038

Avg. Local HHI (/1000)

1.99

1.90

0.726

0.060

0.035

0.003

Total

   

− 23.34

 

0.544

  1. The first two columns show the average characteristics over 2010–2019 of non-SIBs in the largest quintile (Q5) vs. the G-SIBs. The third column shows the estimated coefficient on a given variable in the regression shown in column (6) of Table 6 (i.e., estimated on the non-G-SIB sample only). The fourth column then multiplies the difference between columns (1) and (2) with this coefficient from column (3). This yields the implied effect on non-SIB CIRs relative to G-SIBs’. The sum of these values adds up to the change in the gap between the Q5 and G-SIB coefficients between column (4) and column (6) of Table 6. The final two columns undertake a similar decomposition for the ROA regressions
Back to article page