The Effects of Nonperforming Loans on Dynamic Network Bank Performance

Table 3

Profitability and risk management regression of input and output.

Profitability stage	Profitability performance		Risk management stage	Risk management
Inputs	Outputs		Inputs	Outputs
	Interest earnings	Operating profits		Nonaccrual loans	Allowance for uncollectible accounts
Constant	705.6222	3581.7060	Constant	1018.1950	4149.9050
Deposit	0.000856	0.0033	NPLs	0.8798	0.3768
Loans	0.001112	0.0023
	0.245549	0.2680		0.9167	0.2399
Adjusted	0.240217	0.2628	Adjusted	0.9164	0.2373
	46.05354	51.8058		3126.5340	89.6538

means are significantly different at ; means are significantly different at ; means are significantly different at .