Research Article
Competition, Survival Issue, and Performance Constraints of Banks: Evidence from Ethiopian Private Commercial Banks
Table 2
Multicollinearity test (model 1).
| Variable | Centered VIF | 1/VIF |
| DER | 2.1989 | 0.4547 | CAR | 1.8261 | 0.5476 | Total loan/total assets (TL/TA) | 3.6714 | 0.2723 | Total-investment/total asset (TI/TA) | 1.2240 | 0.8169 | Net profit per employees (NP/Em) | 1.5198 | 0.6579 | Total loans per branches (TL/Br) | 1.2638 | 0.7912 | Total income/total assets (Tinc/TA) | 5.8391 | 0.1712 | Interest income/total income (II/Tinc) | 5.0275 | 0.1989 | Noninterest expense/total expense (NIE/TE) | 1.3555 | 0.7377 | Total liquid assets/total deposit (TLA/TD) | 1.2162 | 0.8222 | Cash/total deposits (cash/TD) | 2.9236 | 0.3420 |
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