The significance of bank-specific and macroeconomic factors to non-performing loans (NPLs): In the perspective of universal banks in the Philippines from 2006-2015

Date of Publication


Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Management of Financial Institutions


Ramon V. Del Rosario College of Business


Financial Management Department

Thesis Adviser

Junette Perez

Defense Panel Chair

Rene Betita

Defense Panel Member

Alfredo Santoyo


This study aims to determine the relationship between macroeconomic and bank-specific factors to the NPLs using the 9 publicly listed universal banks in the Philippines from 2006-2015. Furthermore, it intends to know how far these factors have influence to NPLs, and which of the factors have the greatest impact to NPLs. In order to identify the relation of the factors, the group used panel data analysis, and other data analysis including correlation, multicollinearity, and heteroskedasticity. For this study, the independent variables are macroeconomic and bank-specific factors. The macroeconomic determinants consist of: Inflation rate, real Interest rate, real effective exchange rate, and gross domestic product. On the other hand, bank-specific components are as follows: return on equity, loan to deposit ratio, bank size, board composition, and market share. After running the panel data analysis, the group discovered that robust form of random effects model is better suited in explaining the relationship of the studys independent and dependent variables. Furthermore, the proponents found that out of all the independent variables, one from macroeconomic determinants meet the 5% significant level, which is the gross domestic product whereas one of bank-specific components reached the significant level of 0.05 and that is the loans to deposit ratio.

Abstract Format






Accession Number


Shelf Location

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

Physical Description

vii, 98, 4 leaves ; 28 cm. + 1 computer disc ; 4 3/4 in.


Universal banks--Philippines; Bank loans--Philippines

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