4.1. Multivariate analysisTo examine the association between financial stability and bank diversification, we regress the financial stability variables on Lagnon-interest income/TOR, its squared term, and other control variables. In Table 3, we find a significantly negative relationship betweenStandard ROA (2-yr) and Lag non-interest income/TOR, and we find a significantly positive relationship between Standard ROA (2-yr) andLag SQ non-interest income/TOR. The results for Models (3) and (4) in Table 3 indicate that the effect of Lag non-interest income/TOR onDistance-to-default is positive and that of Lag SQ non-interest income/TOR on Distance-to-default is negative. These effects are jointly