Determinants of net interest margin behavior: Evidence from selected domestic banks in the Philippines

• Main Authors: Aldaba, Charity Lourdes, Papa, Armand Akee, Polinga, Jerome, Santos, Jose Antonio
• Format: text
• Language: English
• Published: Animo Repository 2009
• Subjects: Banks and banking > Philippines; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/18423
• Institution: De La Salle University

The main problem of the study is to investigate the determinants of net interest margin behavior of domestic banks in the Philippines from the year 1998 to 2007. This involved applying the model of Ho and Saunders (1981) to 18 commercial and universal banks to determine the relationship of the different banking ratios and macroeconomic determinants with respect to NIMs of banks across the timeline. Since there is no standard in computing for the NIMs, the researchers made use of the alternative proxy variables utilized in the study of Brock and Suarez (2000). The results of the study have shown that majority of the micro determinants specified by the researchers affect the behavior of the NIM across banks while none of the macro determinants seem to have shown a significant effect on NIM behavior in this particular study.