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Item Restricted Determinants of bank interest margins and financial liberalization: the Philippine case(2002-10) Alamil, Stella Marie Lakindanum; Pascua, Anne Imelda CaringalThis paper lends a useful framework in explaining the bank interest margins in the Philippine Banking System in the context of the financial liberalization enacted in 1994. Using quarterly financial statements of commercial banks in the years 1995-2001, the paper identifies that the level of non-performing loans, foreign concentration, overhead costs, taxation and inflation are significant determinants of bank spreads. The study also provides empirical evidence that liberalization had a considerable impact in lowering the bank margins, but only to a certain extent. Real competition failed to materialize because of the observed complementary relationship of the local and foreign banks.Item Restricted The impact of interest rates on Philippine stock market(2001-03) Patalinghug, Jason Albert C.; Solon, Orville C.Empirical studies on the relationship between interest rates and Philippine stock market are rare. This study investigates the influence of interest rates on Philippine stock market. The impact of foreign interest rates on Philippine stock market is examined by regressing separately changes in U.S. discount rate, Federal Funds rate, U.S. prime rate, and LIBOR on changes in Philippine stock market index. The impact of domestic interest rates on Philippine stock market is analyzed by regressing individually the change in the savings deposit rate, Treasury bill rate, and time deposit rate on the change in Philippine stock market index during the 1994-2000 period. The estimates indicate that U.S. discount rate and Federal Funds rate do not affect Philippine stock market. But U.S. prime rate affects Philippine stock market. Among domestic interest rates, only savings deposit rates affect Philippine stock market. However, most of the evidence supports the hypothesis that the Philippine stock market is efficient in the semistrong form.Item Restricted An analysis of the effect of interest rate policies on commercial bank lending to small-scale industries(1982-01) Promentilla, Rodney; Hugo, PerfectoItem Restricted Interest rates and other determinants of the level of deposits(1982-04-07) Nava, Ma. Carmen Vicente B.Item Restricted The effects of GDP growth, currency depreciation, and lending rates on non-performing loans(2002-03) Hernandez, Jeffrey A.; Pascua, Jeffrey V.; Reside, RenatoItem Restricted The sensitivity of Philippine interest rates to the US federal funds rate(2006-10) Aquino, Ma. Felicia; Manalo, Mark Paul; Bautista, Maria Socorro GochocoThe sensitivity of Philippine interest rates to US interest rate hikes is the main focus of this paper. The US Federal funds rate, among others, is closely monitored by the Bangko Sentral ng Pilipinas and other central banks in the world. This is because the Federal funds rate indicates any tightness in the US banking sector that factors in US monetary policy stance. This paper investigates whether a long-run relationship exists between the different Philippine domestic interest rates and the Federal funds rate. Results from the cointegration tests suggest that there is a long-run relationship among the four domestic interest rates (ORP, ORRP, IBCLR and TBILL364) and the explanatory variables, the federal funds rate and the inflation differential. It also estimates the speed of adjustment for each domestic interest rate. Compared to Frankel's [2002] result, the results suggest that domestic interest rates adjust faster to changes in the US federal funds rate. The calculated half-life in this study is less than that calculated by Frankel and others. This leads us to the conclusion that domestic interest rates adjust more quickly to changes in the federal funds rate than to changes in the 3-month US Treasury bill rate.Item Restricted The liberalization of the Philippine banking sector: its effect on the interest rate spread and profitability of banks (1998-2008)(2009-01) Burgos, Bea Rosario Louise S.; Nario, Ma. Regina O.; Tecson, GwendolynThe liberalization of the Philippine banking sector was intended to improve financial intermediation by promoting competition and enhancing the efficiency of the domestic banking sector. We examine how the entry of foreign banks affects the interest rate spreads and profitability of domestic banks and we find support that it does not systematically reduce both. Interest rate spreads of domestic banks remain on the same level and their profitability continues to grow. Nevertheless, foreign competition, at some extent, drives domestic banks to improve their operating performance. We construe that the presumed effect of the liberalization was felt but not fully realized.Item Restricted Simple interest rate rule and its application in the Philippine monetary policy(2009-11) Kintanar, Gilbert Michael V. Jr; San Andres, Robert Ian P.; Reside, RenatoThis study tests the assumptions made in the Taylor Rule and the consistency of the rule when it is applied in the context of the Philippines. An OLS regression will be done by using historical data on overnight reverse repurchase rates, inflation rate, output gap, and unemployment rates. Aside from the original form of the Taylor rule, another alternative model called a Taylor-type rule was used to make a more realistic policy framework. This model will be using lagged values of inflation, output gap, and unemployment, while other variables such as the exchange rate and the Fed Funds Rate will be added. The paper uses two measures of inflation, the CPI inflation and core inflation, to see if there is any significant difference. The results show that even though the estimates vary from the original rule, the regression still follows a similar path from the actual path of the interest rule. Using two kinds of measure for inflation show significant difference in the coefficients; although figures show that there is a small difference when using two measures. As a substitute for output gap, the unemployment rate is significant in describing the country's reaction function.Item Restricted Inflation, Philippine savings and interest rates, 1970-1984: relationships and implications(1986-03-17) Carotan, Ana Bella V.; EmpeƱo, Armina C.Item Restricted Impact of interest rates on consumer durable spending(2003-10) Lu, Frederick Y.