A study on the relationship between the Bangko Sentral regulations and banks' merger decisions

• Main Authors: Atienza, Kristine T., De Jesus, Toni Margaret, Reyes, Maria Lourdes Bernadette C., Sison, Vannity Kaye D.
• Format: text
• Language: English
• Published: Animo Repository 2009
• Subjects: Bank mergers > Philippines; Banks and banking > Philippines; Central Bank of the Philippines; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/18435
• Institution: De La Salle University

There has been little research done in the Philippines that has examined the relationship of banking regulations with the decision of the banks to merge. Bangko Sentral has been consistent in encouraging banks to merge since the Asian financial crisis in 1997. The odds of a bank being involved in a merger may be affected by the banks' capital adequacy, asset quality, management competence, earnings and liquidity and as well as other factors such as economic health of a state, interest rate and banking competition. The group used logistic regression in examining these factors in relation to the banks' decision to merge. However, the encouragement of Bangko Sentral through its regulations still has affected the banking industry's merger activities.