Measuring the interconnectedness among the top players of the four financial sectors (banks, brokerage firms, insurance companies, and mutual funds) in the Philippines for the years 1995-2012

Date of Publication

2013

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Commerce Major 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

Lawrence T. Co.

Defense Panel Member

Alfredo Santoyo
Tyrone Chan Pao
Junette Perez

Abstract/Summary

The researchers measure the interconnectedness among banks, brokerage firms, insurance companies, and mutual funds in the Philippines to determine if it exists in our financial system. By applying simple linear regression and Granger causality tests to the annual equity returns of the top player institutions in each sector, the researchers find that interconnectedness do not exist between them. Since interconnectedness is a very new concept which was brought about by the recent 2008 Subprime Mortgage Crisis, it is less likely to be existing in a very young financial system. In conclusion, banks, brokerage firms, insurance companies and mutual funds are not interconnected for the following reasons: (1) Philippine financial system is young (2) has low hedging and leverage relative to financial systems that exhibits interconnectedness (3) there is a large difference in the scale of operations and (4) there are different regulators for each sector working independently.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU21200

Shelf Location

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

Physical Description

102 leaves

Keywords

Financial institutions--Philippines

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