ASEAN bank integration framework an analysis on the determinants of profitability performance of ASEAN banks
Date of Publication
4-6-2019
Document Type
Master's Thesis
Degree Name
Master of Science in Computational Finance
Subject Categories
Finance and Financial Management
College
Ramon V. Del Rosario College of Business
Department/Unit
Financial Management
Thesis Adviser
Rene B. Betita
Defense Panel Chair
Tomas S. Tiu
Defense Panel Member
Michael Gines Munsayac
Myra V. De Leon
Abstract/Summary
Using two regression analysis, Arellano Bond estimator and Simultaneous Equation, this paper studies the bank specific and macroeconomic determinants of banks profitability, return on asset and net interest margin, of 45 banks across six countries (Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam) of the ASEAN region for the period of 2012-2016. Results show that there is a high level of persistency for net interest margin due to tight competition within the region. Inflation is the only variable with positive and significant impact while nonperforming loans ratio, long term borrowing rate and reserve requirement ratio have negative and significant impact to return on asset. For net interest margins, only loan to deposit ratio has positive and significant impact while bank size, cost to income ratio and long term borrowing rate have negative and significant impact. Most of the factors that have significant impact on bank’s profitability are bank specific. Internal policies changes are more appropriate in order to improve profit performance. These policies should be executed properly and should be aligned with the current macroeconomic policies implemented.
Abstract Format
html
Language
English
Format
Electronic
Accession Number
CDTG008193
Keywords
Banks and banking--Southeast Asia; Bank profits--Southeast Asia
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Recommended Citation
Esquivel, M. C. (2019). ASEAN bank integration framework an analysis on the determinants of profitability performance of ASEAN banks. Retrieved from https://animorepository.dlsu.edu.ph/etd_masteral/7152
Embargo Period
2-17-2025