Date of Publication

9-2011

Document Type

Master's Thesis

Degree Name

Master of Science in Accountancy

Subject Categories

Business

College

Ramon V. Del Rosario College of Business

Department/Unit

Accountancy

Thesis Adviser

Arnel Onesimo O. Uy

Defense Panel Chair

Tereso S. Tullao Jr.

Defense Panel Member

Wilfredo A. Baltazar
Aaron C. Escartin

Abstract/Summary

The CAMEL (stands for capital adequacy asset quality management quality earning ability and liquidity) Rating System is one of the various measures used in assessment of bank performance. Literature is rich with studies on how capital affects bank performance. CAMEL however considers capital adequacy as part of the overall bank performance. The study considered capital adequacy as a separate variable which affects bank performance as represented by the other variable in CAMEL. The study also differentiated the effects of capital adequacy to bank performance when represented by the unweighted equity-asset-ratio and the risk-based capital adequacy ratio. The study found that among the capital adequacy affects earning ability and liquidity. Based on the empirical results, increasing capital without consideration as to the type of capital or the risk-weight of asset that capital will fall unto may be a blind move towards improving bank performance. Improving Tier 1 capital may deteriorate bank performance in terms of liquidity and may improve no other category. However, being a regulatory requirement in the Philippines, banks should maintain their Tier 1 capital adequacy ratio at minimum. As for Tier 2 capital adequacy ratio, which can improve bank performance in terms of two categories should be explored and be maximized, depending on the risk that a given bank is willing to take.

Abstract Format

html

Language

English

Format

Electronic

Electronic File Format

MS WORD

Accession Number

CDTG005078

Shelf Location

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

Physical Description

74 leaves : ill. ; 1 computer optical disc

Keywords

Banks and banking

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