Canonical correlation analysis of the assets and liabilities of Philippine universal and commercial banks, 2005-2011

• Main Authors: Chen, Xinian, Dee, Aaron John, Hong, Jennie B., Park, Min Ho
• Format: text
• Language: English
• Published: Animo Repository 2013
• Subjects: Universal banks > Philippines; Banks and banking > Philippines; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/18526
• Institution: De La Salle University

This study used a multivariate statistical technique known as canonical correlation in examining the asset and liability management of 30 Philippine universal and commercial banks for the period covered 2005 to 2011. The study would like to determine the individual asset and liability accounts that are strongly correlated and the position and strategies being used by banks with different ownership structure. The results of the study showed that asset-liability dependency for either public-private banks or foreign banks did not exhibit declining trend over the period. Moreover, it was found out that in terms of strategies in managing their assets and liabilites, public-private banks are more conservative while foreign banks are more balanced. Nonetheless, both public-private and foreign banks are generally inclined to liability management.