An analysis of risk management, capital structure, liquidity, lending and profitability in bank's net purchases and sales of loans for all securities and exchange commission registered banks of the Philippines for the years 1998 to 2002

• Main Authors: Chua, Xavier Patrick L., Lao, Richmond O., Robins, Ronald Robinson K., Tan, Patrick John T.
• Format: text
• Language: English
• Published: Animo Repository 2006
• Subjects: Credit > Philippines > Management; Risk management > Philippines; Loan sales > Philippines; Loan servicing > Philippines; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/14194
• Institution: De La Salle University

The Proponents test how active management of bank credit risk exposure through the sales of loans market affects capital structure, liquidity, lending and profitability in Bank's net purchases and risk. The Proponents found out that Philippine banks do hold less capital to risky assets via loans sales market. These banks that use the loan sales market use this for risk management purposes instead of altering their holdings of loans. The proponents extended this by showing that bigger banks hold less capital to risky assets than small banks. Liquidity also decreases if a bank is engaged in the loan sales market as in the case of big banks. The Proponents also found out that banks that engage in the loan sales market inconsistently increases bank performance which means that active participation in the loan sales market is a promising tool for a banks' credit risk management in the Philippines.