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...

One of the issues contending the rural borrowers, who are composed of small entrepreneurs, fishermen and farmers, is the access to financial services of formal financial institutions. With this fact on hand, this article discusses the issue within the framework of asymmetry of information...

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...

The 1991 Local Government has initiated comprehensive changes in Philippine public administration such as decentralization and greater local autonomy. However, the macroeconomic picture has been characterized by volatile inflation, foreign exchange and interest rate. Against this backdrop, this...

Early 1980s has seen series of reforms in the Philippine financial system having improved financial intermediation as the general objective. This paper reviews the pace and effectiveness of the reforms implemented by the government. Findings show that economic instability and the ineffective...

Monetary policies refer to the actions of central banks aimed to achieve macroeconomic stability and to influence financial factors such as money and interest rate. This paper discusses the framework for analyzing how monetary instruments affect monetary targets and the advantages and...

This article analyzes the capacity of LGUs to issue securities under the regulatory framework offered by PD 752 and the 1991 LGC. A qualitative analysis of the regulations and requirements of the securities market has been performed. This is extended to a case study of bond issued by the Cebu...

Regardless of the growth and rehabilitation of several financial institutions in the last decade, a large number of borrowers have not yet been served, specifically small farm and entrepreneurs. This paper describes the Philippine banking system focusing on its effect to the different...

The analysis of credit rationing in the context of the classical equilibrium model implies the existence of financial repression where interest rates are controlled. Given fixed interest rates at a level lower than the market clearing rates, borrowers are expected to demand more loans than...

One of the important weapons the government has used to alleviate poverty is its credit policy aimed to mitigate destitution among small farm households. However, its intended recipients have not properly received the effort. Convinced that credit availability can be sustained to achieve poverty...