A study on the impact of elections and ownership on the performance of commercial banks in the Philippines

Date of Publication

2009

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

Ruben Carlo O. Asuncion

Defense Panel Chair

Rolando D Esguerra

Defense Panel Member

Robert Dan Roces
John Paolo Rivera

Abstract/Summary

Over the years, the Philippine electroral system has faced a lot of issues with cheating, icluding vote buying, padding voters' lists, and the infamous dagdag-bawas. Considering the importance of elections and the issues related to such event, knowing the effects of elections on bank performance can be useful to many.

This research studied the effects of not only the lections, but also of the type of ownership structure on the performance of commercial banks in the Philippines. Secondary data was gathered from the financial statements found in the Securities and Exchange Commission, Bangko Sentral ng Pilipinas, the Philippine Stock Exchange, and the main branches of banks whose financial statements were not available in the aforementioned.

The results of the regression showed that ownership structure indeed affects bank performance as measured by return on assets (ROA), net interest margin (NIM) and overhead cost (cost). Results showed, althuogh insignificant, that public banks tend to be negatively correlated with NIM, and negatively correlated with ROA, positively correlated with NIM, and negatively correlated with COST. On the other hand, foreign banks tend to be significant and negatively correlated with COST, negatively correlated with ROA, and positively correlated with NIM. The proponents found no significant difference during election and non-election periods in the ROA and COST of public and foreign banks. The impact of elections and ownership can be seen in the NIM criterion of a bank's performance. This change, however, cannot be attributed to the use of loans for campaigns, but to the low demand for loans then resulting in lower interest rates.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU21858

Shelf Location

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

Physical Description

42, [11] leaves : illustrations

Keywords

Banks and banking--Philippines

This document is currently not available here.

Share

COinS