whereDLoan change from the beginning to the end of the quarter in the natural log of loans (COMPUSTAT ‘‘lntalq’’); Recession an indicator variable equal to one for periods between 2001Q2 and 2001Q4, and periods between 2008Q1and 2009Q2, and zero otherwise;Capital R1 the Tier 1 risk-adjusted capital ratio (COMPUSTAT ‘‘capr1q’’) at the beginning of the quarter, divided by 100;DUNRATE the change in the quarterly unemployment rate. Data is collected from the website of Department of Labor:http://www.bls.gov/, Size the natural log of lagged total assets (COMPUSTAT ‘‘atq’’); Deposits lagged total deposits (COMPUSTAT ‘‘dptcq’’) divided by total loans;DCapital R1 quarterly change in Capital R1, that is the beginning Capital R1 minus lagged beginning Capital R1; sret standard deviation of daily return of the previous quarter.