Inefficiency in commercial banks: A quantitative approach to the analysis of bank-specific and macroeconomic factors affecting the commercial banking industry in the Philippines from 2009-2013

Date of Publication

2015

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

Mar Andriel Umali

Defense Panel Member

Joe Bisquera

Prince Cu

Alddon Ang

Abstract/Summary

This study examines the factors of cost efficiency consisting of commercial banks operating in the Philippines. For the purposes of this research, inefficiency is strictly described as the cost-to-income ratio based on its accounting definition. Using a dataset of 11 publicly listed commercial banks in the Philippines for the period of 2009-2013 and panel data regression analysis, the researchers then regress the cost inefficiency, being the dependent variable, with economic variables (economic growth and inflation rate) and bank-specific variables (asset size, loan loss provision, personnel expenses to total expense, capital adequacy ratio, and liquidity). After performing the Hausman test, results show that the apropriate technique used for this dataset is the random effects regression model. Among the aforementioned variables, only the asset size of the bank, loan loss provision to gross loan, and liquidity (current ratio) have been proven to be significant in explaining the CIR.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU21660

Shelf Location

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

Physical Description

122 leaves ; 29 cm.

Keywords

Banks and banking--Philippines; Bank assets-- Philippines

This document is currently not available here.

Share

COinS