An analysis of the financial performance of the Development Bank of the Philippines (DBP) before and after the implementation of the wholesale banking program from 1986-1995

• Main Authors: Alano, Rhea Therese B., Dela Cruz, Glennda O., Esguerra, Isabelita L., Uy, Houbert Bryann J.
• Format: text
• Language: English
• Published: Animo Repository 2000
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/16679
• Institution: De La Salle University

To be able to carry out the objectives of this thesis and prove the hypothesis made, the proponents used a number of tests for each of its objectives and hypothesis. For the first objective, to be able to determine if there was an increase or no increase in the financial performance of DBP, the Time Series Analysis provide evidence that it is the best tool to accomplish the requirement. Since Time Series is used for forecasting (Lapin 1973), the researchers have determined that from 1986-1995 there was no increase in the financial performance of DBP as a whole. Moreover, to test the second hypothesis, the researchers have found out that there was no significant change in the financial performance of DBP when the Wholesale Banking was imposed. This was accomplished with the use of the McNemar Test for significance, which is the commonly used tool for the assessment of the significance of the before and after changes that occur in a particular subject (Parel 1979). As for the Risk Return, although there was a positive correlation among the ratios from 1986-1995 that has indeed proved that the financial ratios are related and that a change in each of them would also affect the ratios of the following year. All of the computations employed were achieved with the use of the MICROSOFT EXCEL software. With regard to the sample size, the researchers have evaluated 16 ratios from Risk, Liquidity, Profitability, Efficiency and Leverage Ratios to be able to fully determine the financial performance of the Development Bank of the Philippines. Furthermore, with respect to the Research Design used in this study the Causal-Comparative was the one applied in this paper. In addition to this, with the tools used in this thesis such as the Ratio Analysis, Time Series, t-test and the McNemar Test of significance. The researchers have found out that although there were minimal changes in the financial performance of DBP from the 1986-1995 it was still proven with the use of the statistical tests that there were no significant changes in the financial performance of DBP before and after the implementation of the Wholesale Banking Program as best amplified by the bank's profitability ratios. In summary, DBP has established its name all throughout the years by continuing to serve its purpose. Despite the fact that the researchers' analysis showed that there was no significant difference in the financial performance of DBP before and after the implementation of it's Wholesale Banking Program it does not follow that the Wholesale Banking Program is not efficient but rather the researchers propose that further studies and tests be done to analyze more profoundly the financial performance of DBP and it's Wholesale Banking Program.