The role of revenue diversification on bank market power and bank stability: The case of selected publicly-listed commercial banks in the Philippines (2007-2012)
Date of Publication
2014
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
Alfredo M. Santoyo
Defense Panel Chair
Ricarte Q. Pinlac
Defense Panel Member
Tyrone Panzer L. Chan Pao
Roberto Jesus P. Camagong
Abstract/Summary
This paper examines the association among revenue diversification, bank market power and bank stability in an intra-country setting using a sample of 11 commercial banks from the Philippines. This study has been conducted in line with the continuous widespread of financial liberalization worldwide, specifically in Asia since the beginning of its influence in the banking industries in the 1980s and 1990s. Activities related to the continuous liberalization of the banking sector include minimal government intervention, deregulation of interest rates, and entry of foreign banks in the local banking sector. With the use of the Arellano-Bover/Blundell-Bond dynamic model, the results show that banks' market power and their level of revenue diversification are not significantly associated with one another which disprove the simultaneous relationship between the two. On the other hand, revenue diversification has a negative yet significant correlation with bank stability which suggests that banks tend to be less stable when they diversify their sources of income. This paper finds that while high level of revenue diversification does not guarantee a high market power (and vice versa), a high level of revenue diversification suggests a tendency of bank instability.
Abstract Format
html
Language
English
Format
Accession Number
TU21761
Shelf Location
Archives, The Learning Commons, 12F, Henry Sy Sr. Hall
Physical Description
66 leaves : illustrations (some color)
Keywords
Banks and banking--Philippines; Revenue
Recommended Citation
Hizon, M. F. (2014). The role of revenue diversification on bank market power and bank stability: The case of selected publicly-listed commercial banks in the Philippines (2007-2012). Retrieved from https://animorepository.dlsu.edu.ph/etd_bachelors/18488
