Recognition of a continuous improvement in the formal financial system is necessary for economic growth. Over the years, the government has been infusing cheap funds into the rural sector. Unfortunately, it overlooks a number of serious issues regarding bank’s transaction costs. This article...

As far as the policies are concerned, the government has been successful in reversing the flow of loanable funds in favor of rural areas through maintenance of agricultural loan quota and deposit retention policies. This paper examines the structure of funds transfer operations of rural-based...

Utilizing time-wise autoregressive model to investigate the perception of the international community on the Philippines, which has suffered from debt crisis in 1982, indicates that banker’s creditworthiness assessments are sensitive not only from liquidity and solvency but also from long-term...

This article provides a background to the birth of offshore banking units (OBUs) in the Philippines, its operations and the factors affecting the positioning of financial offshore centers. It also discusses the issues confronting OBUs and its effects on domestic banks/banking technology. A short...

This article models the small LDC bankers’ profit maximizing and decisionmaking processes in addressing policy actions. Its implications are useful for future policy reforms.

This paper is an edited and expanded version of PIDS Staff Paper 87-02. It provides a number of facts and observations regarding agricultural credit, the main source of which is the ongoing program to rehabilitate the rural banks, to re-orient the concept of supervised credit and the creation of...

This paper reports the empirical results of an attempt to develop a statistical classification system for rural banks using common financial ratios as predictor variables. Though it provides a formal and fast way to classify banks, the classical techniques utilized in this paper should not be...

Since the global financial crisis in 2008/09 there has been heightened concern about the resilience of banking systems in Southeast Asia. This paper proposes a methodology that uses a macroprudential perspective to assess the resilience of banking systems in member countries of the Association...

Analysis of the performance of rural, private commercial and private development banks indicates that while private commercial banks has done intensive savings mobilization drive outside NCR, the performance of these three financial institutions depend on their operating policy framework and the...

This paper attempts to describe and analyze the extent of problems in the Philippine financial system, their causes, regulatory and supervisory responses to such problems and the incidence of the costs of bank failures. These are all in the hope of providing lessons that are useful in...