An analysis of the performance of the domestic and foreign banks and their effect on the Philippine economy

The purpose this research is to compare and identify the variables of both domestic and foreign banks which may impact the Philippine economy by investigating the relationship of the banking performance variables such as deposits, investments, capitalization, operational efficiency (OPEXTA), asset s...

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Bibliographic Details
Main Authors: Chan, Mark Astrid Y., Locsin, Jonathan Kevin W., Ruanto, Philip Matheson O.
Format: text
Language:English
Published: Animo Repository 2017
Subjects:
Online Access:https://animorepository.dlsu.edu.ph/etd_bachelors/9591
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Institution: De La Salle University
Language: English
Description
Summary:The purpose this research is to compare and identify the variables of both domestic and foreign banks which may impact the Philippine economy by investigating the relationship of the banking performance variables such as deposits, investments, capitalization, operational efficiency (OPEXTA), asset size and interest earnings to gross domestic product (GDP) which is the variable used to signify the economic status of the Philippines. The researchers used a sample size of sixteen (16) banks in total, eight (8) for domestic and eight (8) for foreign banks over the course of eight (8) years from 2009-2016. Panel data analysis was conducted to determine the significant independent variables. As a result it was determined that deposits, operational efficiency (OPEXTA) and asset size significantly affected GDP for both foreign and domestic. Whereas investments and capitalization are not significant variables for both foreign and domestic. Interest earnings is significant for foreign banks and not significant for domestic banks.