Structure And Performance Of The Philippines Banking Market
This study aims to investigate the nexus between the market structure, efficiency and performance of the Philippines' universal and commercial banks. In this study, 18 universal and commercial banks in Philippines are analyzed. This study applies the Data Envelopment Analysis (DEA) in measur...
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| Main Author: | |
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| Format: | Final Year Project Report |
| Language: | English |
| Published: |
Universiti Malaysia Sarawak, (UNIMAS)
2013
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| Subjects: | |
| Online Access: | http://ir.unimas.my/id/eprint/37798/1/Rozlina%20Rosli%20ft.pdf http://ir.unimas.my/id/eprint/37798/ |
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| Summary: | This study aims to investigate the nexus between the market structure, efficiency
and performance of the Philippines' universal and commercial banks. In this study, 18
universal and commercial banks in Philippines are analyzed. This study applies the Data
Envelopment Analysis (DEA) in measuring the efficiency of banks. Concentration ratio
and Herfindahl-Hirschman Index (HHI) are used to determine the market structure of
banks. In order to investigate the factors affecting the performance of banks, the market
structure and efficiency are regressed on the profitability ratios of banks. It is found that
the market structure affects the banks' profitability positively, when it is regressed on the
ratio of profit before tax to shareholders' equity (RROEB). Meanwhile, banks' efficiency
correlates positively when the ratio of net interest margin to total assets (NIMTA) is used
as the dependent variable. The mixed results obtained in this study suggest that the
decisions on increasing concentration ratio and improving efficiency to increase the
profitability of banks cannot be achieved simultaneously. |
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