Impact of inflation and taxation on interest rates of bank loans, savings and time deposits of the Philippine banking industry

• Main Authors: Chua, Daphne Trina Tan, Estrella, Ernesto Llacar, Ocampo, Trisha Marie Rodriguez
• Format: text
• Language: English
• Published: Animo Repository 1993
• Subjects: Interest rates > Effect of inflation on; Inflation (Finance); Bank deposits; Bank loans; Savings accounts; Banks and banking > Taxation
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/16146
• Institution: De La Salle University

Theories on the effect of inflation and taxation on interest rates have been developed and applied for many years in the United States and other countries. However, in the Philippine setting, studies on the factors affecting interest rates have not been given much importance. In this paper, the researchers studied the relationship and effect of inflation and taxation on financial instruments of banking institutions. These financial instruments would be bank loans, savings and time deposits. As statistical tools, the Pearson correlation coefficient and regression analysis were used. The findings showed the significant relationship and effect of taxation on interest rates of the different financial instrument supporting the theories made on it. However, varying conclusions can be made on the relationship and effect of inflation on these financial instruments.