The determinants and probability of diffusion of selected financial innovations of five universal banks in the Philippines for the period 2000-2010
Financial innovations are the trump cards of players in the banking industry. This paper describes the probability that banks decide to adopt and implement a financial innovation. It also gives a glimpse of the factors that are significant to the banks' decision to adopt. Three specific innovat...
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| Main Authors: | , , , |
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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/18360 |
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| Institution: | De La Salle University |
| Language: | English |
| Summary: | Financial innovations are the trump cards of players in the banking industry. This paper describes the probability that banks decide to adopt and implement a financial innovation. It also gives a glimpse of the factors that are significant to the banks' decision to adopt. Three specific innovations were chosen for the study: unit investment trust funds under products, prepaid cards under services, and risk management under production processes. And to fully understand the factors in adoption, the variables taken into consideration were: the length of time the CEO was in office, the total assets of the bank, the return on equity, and the Herfindahl-Hirschman index. While other papers would approach the topic theoretically, this paper includes an empirical study on the probability of adoption using a Probit regression model on five selected banks namely, BDO, BPI, PNB, RCBC, and UCPB, with BPI as the bank that is most likely to adopt a financial innovation. |
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