A study on the effects of capital requirements and economic activity to bank loans in the Philippines from 1998-2003
Date of Publication
2006
Document Type
Bachelor's Thesis
Degree Name
Bachelor of Science in Management of Financial Institutions
Subject Categories
Finance and Financial Management
College
Ramon V. Del Rosario College of Business
Department/Unit
Financial Management
Thesis Adviser
Annegirl G. Berin
Defense Panel Member
Dennis Joseph H. Landicho
Milkos Patrick B. Zalameda
Abstract/Summary
The loans extended by banks to its corporate and individual clients have been affected by supply and demand factors. Aside from this fact, capital requirements particularly those set by the Basel Capital Accord I has been affecting the changes in the loans. The paper examines the effect of the imposition of minimum capital requirements to the movement of loans extended by banks in the Philippines, a developing country. The differences of the banks reaction from a developed and a developing world were also reviewed. It was found in the study that while capital requirements proved to have a significant effect in developing economies, the study for the Philippine setting proved otherwise. In addition, it discussed whether economic activity such as employment and Gross Domestic Product affect loan movements particularly in the rural banks. The results of the study revealed that GDP and employment growth did not affect bank loans in the Philippines in the periods covered by the study. A reason for this could be that people can borrow outside of the area in which they reside, and therefore, even if employment level is high in a certain region, it doesn't necessarily lead to more customers getting loans in that area. Other reasons for these are mentioned in the paper.
Abstract Format
html
Language
English
Format
Accession Number
TU13568
Shelf Location
Archives, The Learning Commons, 12F, Henry Sy Sr. Hall
Physical Description
219 leaves : ill. (some col.) ; 28 cm. + 2 computer optical disc
Keywords
Bank loans--Philippines--Management; Banks and banking--Philippines; Credit--Philippines-- Management; Philippines--Economic conditions-- 20th century
Recommended Citation
Capili, D. O., Certeza, R. O., Dy, D. C., & Fajardo, J. Q. (2006). A study on the effects of capital requirements and economic activity to bank loans in the Philippines from 1998-2003. Retrieved from https://animorepository.dlsu.edu.ph/etd_bachelors/14190