The effects of the risk-based capital adequacy framework to the profitability of the Philippine expanded private domestic banks from 2000-2004

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

Joseph James F. Lago

Defense Panel Member


Steven S. Lim
Edralin C. Lim

Abstract/Summary

The Bangko Sentral ng Pilipinas is mandated to provide supervision for the operations of the banking industry, as well as, non-bank financial institutions with quasi-banking functions. It exists in order to ensure the stability of the country's monetary and fiscal policies, through the implementation of the different regulations addressing the issues confronted by the banking industry. In this regard, this paper will discuss the risk-based capital adequacy framework and its requirements issued by the Bangko Sentral ng Pilipinas. The proponents aim to study the effects or impact of Circular 280, Series of 2001 on the Philippine expanded private domestic banks from the periods 2000 to 2004.

The data used to quantify the regulation consists of Total risk-based capital adequacy ratio, which served as the independent variable to prove the relationship of the effects of Circular No. 280, Series of 2001 to the bank's profitability. On the other hand, profitability ratios such as return on assets (ROA) and return on equity (ROE) through the Du Pont System of Analysis served as the dependent variable in the study.

After undergoing all of the analyses stated above, the proponents found out that results would lead to the conclusion that the profitability of the Philippine expanded private domestic banks from 2000 to 2004, does not reflect the changes in the Circular 280, Series of 2001.

With the results derived from this study, the proponents provided recommendations that could further improve the implementation of the Circular No. 280, Series of 2001. Through these, the group desires to be able to contribute not only as students but, more importantly, as citizens to the continued development and growth of the commercial banking industry and the country's economy.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU13571

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

1 v. (various foliations) : ill. (some col.) 28 cm. + 1 computer optical disc

Keywords

Banks and banking--Philippines; Philippines-- Economic conditions--20th century

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