394
Table 4.1. Descriptive Statistics of Research Variables Variables
Large DBs N=69 Small DBs N=346
Mean Std. Dev
Mean Std. Dev
I. Loan portfolio structure: composition
Based on Economic Sectors: Agriculture
0.0398 0.0409 0.0246
0.0685 Mining
0.0103 0.0152 0.0066
0.0237 Manufacturing
0.1480 0.0853 0.1361
0.0997 Electricity, Gas and Water
0.0078 0.0216 0.0019
0.0104 Constructions
0.0608 0.0489 0.0458
0.0661 Trade, hotel, and restaurants
0.2327 0.1116 0.2990
0.1851 Transportation and Communication
0.0347 0.0234 0.0394
0.0517 Business Services
0.1529 0.1156 0.1226
0.1121 Social Services
0.0100 0.0181 0.0381
0.1267 Others
0.3030 0.2409 0.2859
0.2380 Based on Loan Types:
Working Capital 0.4479 0.2237
0.5901 0.2581
Investment 0.2779 0.1862
0.1690 0.1743
Consumption 0.2741 0.2420
0.2410 0.2332
II. Loan portfolio structure: concentration
By Economic Sector EHHI 0.2944 0.1682
0.3525 0.1619
By Loan Types THHI 0.4957 0.1581
0.5868 0.1786
III. Loan portfolio risk
Payment Default Risk RISK 0.0356 0.0359
0.0365 0.0728
IV. Return
Gross Interest Income Ratio 0.1270 0.0501
0.1586 0.0552
V. Bank-specific characteristics
Equity Ratio 0.0855 0.0345
11.4212 61.5573 Liquidity Ratio
0.6888 0.1777 0.7695
0.2683
Figure 4.1. Loan Portfolio Concentration Based on Economic Sectors: Small and Large Domestic-owned Banks
Figure 4.2. Loan Portfolio Concentration Based on Loan Types: Small and Large Domestic-owned Banks
0,1 0,2
0,3 0,4
2003 2004
2005 2006
2007 2008
2009 2010
2011 Small
Large
0,1 0,2
0,3 0,4
0,5 0,6
0,7
2003 2004
2005 2006
2007 2008
2009 2010
2011 Small
Large
395
Figure 4.3. Percentage Loan Portfolio Allocation to Different Economic Sectors for Small vs Large Domestic-owned Banks
Figure 4.3 provide evidence that both small and large DBs focus on similar sectors but they differ in
tendency. Large DBs focus primarily on the same sectors as small DBs but with a sharp declining trend
for trade sectors and an increasing trend for others. The loans allocated to unspecified others represent
more than 35 of the total loans of large DBs in 2011. Small DBs provide relatively smaller portions
of their loans to other sectors. In this regard the highest loan allocation by the small DBs is around
30 to the trade sector in 2011.
Figure 4.4. Percentage Loan Portfolio Allocation Based on Loan Types for Small and Large Domestic-owned Banks
Both large and small DBs become more involved in short-term financing of different business
sectors with working capital becoming their most prominent type of finance as confirmed in Figure 4.4.
However, small DBs seems to be more concentrated on single types of loans compared to large DBs. It is
evident from Figure 4.4 that large DBs are more diversified than small DBs with regard to loan types.
4.1.2 Loan Portfolio Performance Risk and Return of Large vs Small Domestic-owned Banks
