Does bank competition lead to financial stability?: A comparative study between the Philippines and Thailand from 2000 to 2006
Date of Publication
2010
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
Junette A. Perez
Defense Panel Member
Ciara Sapalaran
Rene Betita
Manrico Masagca
Abstract/Summary
There are two competing theories on the effect of bank competition on financial stability, competition-fragility view and competition-stability view. The group hypothesizes that competition does not lead to financial stability. This is tested through regressing measures of loan risk, bank risk and equity capital on several market power indicators. The Generalized Method of Moments estimation is used to control for possible endogeneity of measures of the degree of market power. This study departs from the existing literature focusing on developed countries by comparing twenty banks from the Philippines and from Thailand. Data utilized are from the individual bank's annual reports and the OSIRIS database from the 2000 to 2006. Results reveal that the Philippines support the competition-stability view while Thailand supports competition-fragility view.
Abstract Format
html
Language
English
Format
Accession Number
TU21201
Shelf Location
Archives, The Learning Commons, 12F, Henry Sy Sr. Hall
Physical Description
133 leaves
Keywords
Banks and banking--Philippines; Banks and banking--Thailand
Recommended Citation
De Castro, G., Esden, C., Mendoza, P., & Tomaliwan, M. (2010). Does bank competition lead to financial stability?: A comparative study between the Philippines and Thailand from 2000 to 2006. Retrieved from https://animorepository.dlsu.edu.ph/etd_bachelors/18323