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Item Restricted The impact of foreign bank participation on bank spread in the Philippines(2005-10) Alcala, Joey Christopher Ave T.; Ogan, Raymond A.This paper tries to investigate the impact of foreign entry on spreads in the Philippine banking system. It uses bank level data from 46 commercial banks (both domestic and foreign) covering the period 1995-2002. This study finds that increased foreign bank participation raises spreads instead of pulling down their overall level. It does not mean though that no spillover takes effect. Foreign banks may only induce competition in the upper transparent market, whereas domestic banks, having not to depend much in the upper market, are able to charge higher spreads in the lower, riskier segments. Thus, the spillover effect is cancelled out. Moreover, it finds that foreign banks which enter the market through establishing branches with full branching authority have the lowest spread.