A study on the internal and external factors affecting the profitability and efficiency of selected foreign commercial and universal banks ten years after liberalization
Date of Publication
2011
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
Leonardo B. Araneta
Defense Panel Chair
Ricarte Q. Pinlac
Defense Panel Member
Jan Erik Angeles
Ruben Carlo Asuncion
Abstract/Summary
This paper aims to determine the effects of the internal and external factors on the profitability and efficiency of the selected foreign commercial and universal banks in the Philippines, ten (10) years after the liberalization (2005-2010). The group chose eleven (11) foreign banks and utilized a time frame of six (6) years. The dependent variable that was used to measure the efficiency of foreign banks was net income after tax to total operating income (NIATTOI) while net interest margin (NIM) and return on assets (ROA) were used to measure profitability. Meanwhile, equity to asset ratio (EQTA), short term funding (STDTA), concentration (CONC), number of branches (BRANCHES), cost to income ratio (CIR), liquidity (LIQ), annual core inflation rate (INFL) and real gross domestic product growth (RGDPG) were used as the independent variables.
The researchers found out that STDTA, CONC, and BRANCHES were statistically significant to NIATTOI. For profitability, STDTA, LIQ AND BRANCHES were statistically significant to NIM while EQTA, STDTA, CONC and CIR were statistically significant to ROA. The macroeconomic variables that were used in the study, RGDPG and IFL, have no impact on the foreign banks in the Philippines.
Abstract Format
html
Language
English
Format
Accession Number
TU21768
Shelf Location
Archives, The Learning Commons, 12F, Henry Sy Sr. Hall
Physical Description
72, [25] leaves
Keywords
Banks and banking, Foreign--Philippines
Recommended Citation
Lectura, E. S., Lim, L. O., Qua, G. Y., & Tadeo, A. C. (2011). A study on the internal and external factors affecting the profitability and efficiency of selected foreign commercial and universal banks ten years after liberalization. Retrieved from https://animorepository.dlsu.edu.ph/etd_bachelors/18490
