A study of the determinants of interest spreads in the Philippines from 2000-2009
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
Stephanie Chan
Defense Panel Chair
Christian Paolo Romagos
Defense Panel Member
Ma. Esperanza Joven
Maricon Latoja
Abstract/Summary
This paper examines the factors affecting the interest spreads in both the commercial and universal banking industry in the Philippines for the past decade, 2000-2009. An ordinary least squares regression model was used in measuring the effects of the variables. The data used were taken from the Bangko Sentral ng Pilipinas (BSP) and the National Statistical Coordination Board (NCSB) at quarterly intervals. The group classified the variables observed either as bank-specific or as a macroeconomic variable. The bank-sepcific variables consist of aggregate operating cost, aggregate liquidity, aggregate credit risk, and the market structure of each banking industries. While the macroeconomic variables consist of aggregate required reserves, real gross domestic product (GDP) growth, inflation rate, and discount rates.
Banking competition may exist in different degrees across countries. In the Philippines' case, the market structure as measured by the herfindahl index shows that competition exists and that no monopolistic behavior is present in each of the banking sectors. The results show that both bank-specific and macroeconomic factors may affect the interest spreads of both banking industries in the country.
Abstract Format
html
Language
English
Format
Accession Number
TU21855
Shelf Location
Archives, The Learning Commons, 12F, Henry Sy Sr. Hall
Physical Description
55, [15] leaves
Keywords
Financial institutions--Management; Banks and banking--Philippines
Recommended Citation
Arciaga, A. B., Chua, C. S., Pascual, M. T., & Tomas, M. P. (2010). A study of the determinants of interest spreads in the Philippines from 2000-2009. Retrieved from https://animorepository.dlsu.edu.ph/etd_bachelors/18478