Effects of the Interest Rate and Reserve Requirement Ratio on Bank Risk in China: A Panel Smooth Transition Regression Approach

Table 4

Linearity tests.

	Test	Statistic	value
Model (1)	Lagrange multiplier-Wald	15.221	0.048
Model (2)	Lagrange multiplier-Wald	19.489	0.026

Note: : linear model; : PSTR model with at least one threshold.