Outputs and Inputs of Philippine Commercial Banks

Exactly what constitutes bank input and output has not yet been settled. Some argue that deposit liabilities and earning assets are outputs as they represent the capacity of services banks can perform. A number of economists, however, assert that only earning assets can be considered as outputs since inclusion of deposit liabilities fails to distinguish between production in the technical sense and production in the economic sense. To delineate bank outputs and inputs, this study ascertains whether Philippine commercial banks incur positive costs on demand deposits. Utilizing statistical revenue-cost accounting technique, results help to classify bank input and output and to determine the rate of return on the composition of bank portfolio.rate of return, commercial banks, deposit liabilities, revenue-cost accounting model

Financial Liberalization: What Have We Learnt?

This article attempts to study the Philippine experience with financial liberalization. In particular, it examines the impact of interest rate reforms on the flow of loanable funds in the organized financial market.central bank, financial sector, financial reform, financial liberalization, financial services

Credit Crunch! Credit Crunch! Credit Crunch?

Utilizing macro and micro data, this issue verifies the validity of the claim that there has been a credit crunch since the onset of Asian financial crisis. Results do not lend credence to the hypothesis. Instead, the observed slowdown in the credit market is a reflection of the economic downturn.Asian financial crisis, financial market, money and banking, credit program, credit market, credit access

Is LandBank EO138 Ready?

The recent reforms and development in the financial market necessitate the reexamination of the role of Land Bank of the Philippines. This issue argues that LBP should focus on its development function and give up its commercial and investment roles. Once LBP is transformed into a market-based microfinance development institution, the creation of Grameen-type bank is dispensable.financial sector, financial reform, financial system, banking system, financial services

Addressing Constraints in the Provision of Financial Services to MicSMEs and Poor Households

In order to promote microfinance or the provision of a broad range of financial services to poor and low-income households for their microenterprises and small business endeavors, several financial sector reforms were initiated by the government beginning in the 1990s. Notwithstanding the considerably improved policy environment for microfinance to flourish, however, banks still face a number of constraints in expanding their financial services to the above target beneficiaries. What are these constraints? This Policy Notes outlines some of them and recommends measures to address them.microfinance, poverty, small and medium enterprises, microenterprises