Determinants of Philippine Domestic Commercial Bank efficiency and a policy evaluation of the post-asian financial crisis banking regulations

Date of Publication

2008

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Applied Economics

Subject Categories

Economics

College

Ramon V. Del Rosario College of Business

Department/Unit

Economics

Defense Panel Member

Angelo Unite

Angelo Taningco

Rahel Reyes

Abstract/Summary

We investigate Philippine domestic commercial bank efficiency, as measured by interest rate spread (IRS), and its response to the post-Asian financial crisis banking regulations. Using panel data from 1999-2006 for 16 publicly-listed domestic commercial banks, we find improvements in capitalization, better asset quality, enhanced risk assessments and the use of non-interest income to significantly decrease IRS. We also find evidence that spreads decline when banks lend a greater proportion of their loan portfolio to the agriculture, manufacturing, real estate, community and personal services and wholesale and retail trade sectors. Lastly, we find real output growth and T-bill rates to contribute to the decrease of bank spreads. However, these improvements may not have been fully realized due to factors that increase IRS, which include deposit market share, return on assets, operating costs, inflation and the reserve requirement. Overall, we conclude that efficiency of Philippine domestic commercial banks has been improving after the Asian financial crisis possibly because of the new banking regulations implemented by the Bangko Sentral ng Pilipinas.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU16068

Shelf Location

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

Physical Description

75 leaves 29 cm. + + 1 computer optical disc.

Keywords

Banks and banking--Philippines; Financial crises-- Regulations

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