菲律宾银行业盈利能力分析及前景解析.docx

Introduction:In the modern economy, finance is the core of economy system, andthe banking sector as a financial intermediary is the main center of the finance.Since the financial reform from 1990s in Philippines, the banking sector adopted a number of reform measures such as deregulation and internationalization of bank market.The liberalization of market access regulation induced the banks more competitive and efficient.In the 20th century, Philippines economy was experiencing smooth and robust growth until the financial crisis at the end of 2008. Because of the outbreak of financial crisis, the economic growth of Philippines suffered significant influence, which was 1.1% in 2009. As driving factor of Philippines economic growth, banking also was severely affected by this crisis. Before and after the crisis, many performance assessments have changed in Philippines banking sectors. After the Asian financial crisis in 1997, Philippines banks’ total loans had exhibited a steady increased, and this growing tendency was broken because of the financial crisis in 2008.There is an apparent decline in the profitability of banking (ROAA, ROAE) in 2008, which are 0.68 and 6.76, respectively. It worth noting that the non-performing loans rate continued to decline, even in 2008, it was 5.5% which was significantly lower than 7.23% in 2007.During the period of crisis in 2008, the total loans and profitability of Philippines banks experienced a brief decline and then returned to normality. On the other hand, the operational risk of banks tended to continuously decrease after the crisis.It is reasonable to suppose that the financial crisis would have some impacts on the determinants of banks profitability in Philippines. Therefore, this paper aims to analyzethe underlying internal and external determinants that influence profits of banks, and help regulatory authorities to make planning and policy after the financial crisis.This paper is structured as follows. The next section pro