A detailed examination on the relationship of credit risk and interest rate risk with net interest margin of private-owned local universal banks in the Philippines
This paper focused on discovering the relationship of credit risk and interest rate risk with net interest margin of private-owned local universal banks in the Philippines from the years 2004 to 2012. In order to achieve this main objective, Hausman test was utilized in order to determine which mode...
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| Format: | text |
| Language: | English |
| Published: |
Animo Repository
2013
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| Subjects: | |
| Online Access: | https://animorepository.dlsu.edu.ph/etd_bachelors/18339 |
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| Institution: | De La Salle University |
| Language: | English |
| Summary: | This paper focused on discovering the relationship of credit risk and interest rate risk with net interest margin of private-owned local universal banks in the Philippines from the years 2004 to 2012. In order to achieve this main objective, Hausman test was utilized in order to determine which model to use. Consequently, it notified whether it is relevant to use ordinary least squares on the selected model. The results showed that both credit and interest rate risk of the chosen private-owned local universal banks in the Philippines have negative influence on the net interest margin. However, it is only credit risk which was deemed to be a significant variable to the interest margin. |
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