An inquiry into the profitability of selected universal banks before and after the implementation of Special Purpose Vehicle Law

Date of Publication

2006

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science 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

Neriza Delfino

Defense Panel Member

Liberty S. Patiu

Clive Weesit

Leila Calderon Kabigting

Abstract/Summary

As the Philippine financial system hangs on the verge of collapse due to the increasing level of non-performing assets wherein the quality and quantity of bank's earnings suffer, the country was left to seek radical solution that could help alleviate problem. This paved way for the government to pass the Special Purpose Vehicle (SPV) Law, by which special purpose vehicles, otherwise know as asset management companies, were established. The essence of the law was to failitate the transfer of those assets from a bank to third parties consequently, banks are expected to become liquid and are encouraged to lend again.

It has been three years (3) since the law was implimented way back in 2003, criticisms accompanied the SVP Law, and argued that its effectiveness is reliant on institutional factors such as improved insolvency rules and procedures. The researchers believe that by identifying the problems encounterd in the disposition of non-performing assets by the banks, the overall performance can be fairly assessed.

Moreover, this study reflects the impact of the SPV Law on the level of non-performing assets of the banking industry and its effect on the profitability of selected universal banks. Such was achieved through the use of statistical tools in order to analyze the relationship and determine the significant difference in the bank's profitability considering the period before and after the SPV Law. Pearson product moment coefficient and T-test were primary tools utilized. The results were then validated, implying that there are enough evidence to provide adequate conclusions and recommendations.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU21841

Shelf Location

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

Physical Description

106, [125] leaves : illustrations (some color) ; 28 cm.

Keywords

Banks and banking--Philippines

This document is currently not available here.

Share

COinS