Is the Special Purpose Vehicles Act responsible for the decline in NPL ratios?
Added Title
Special Purpose Vehicles Act
College
College of Science
Department/Unit
Chemistry
Document Type
Article
Source Title
DLSU Business and Economics Review
Volume
19
Issue
2
First Page
1
Last Page
10
Publication Date
1-1-2010
Abstract
This study aimed to determine if the SPV Act was actually responsible for the marked decline in NPL ratios this past four years. Using aggregated data for the entire Philippine Banking System, segregated according to type of bank, results suggest that the SPV Act was not responsible for the decline in the NPL ratios but may be attributed to a downward trend in the loan to asset ratio where values are getting closer to the interval for which NPL ratios are at a minimum, economic sluggishness as measured by deviations from the long run trend of macroeconomic variables, and seasonal patterns in macroeconomic variables coinciding with fluctuations in NPL ratios. © 2010 De La Salle University, Manila, Philippines.
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Digitial Object Identifier (DOI)
10.3860/ber.v19i2.1469
Recommended Citation
Chan, S. L., & Pua, A. Y. (2010). Is the Special Purpose Vehicles Act responsible for the decline in NPL ratios?. DLSU Business and Economics Review, 19 (2), 1-10. https://doi.org/10.3860/ber.v19i2.1469
Disciplines
Economics
Keywords
Bank loans—Law and legislation--Philippines; Banking law--Philippines; Ratio analysis
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