posted on 2024-09-05, 22:39authored byMa. Socorro V. Zingapan, Mario B. Lamberte, Josef T. Yap
This paper is an attempt to shed some light on the major OBS activities of commercial banks in the Philippines. Due to data limitations, the paper focuses on the trust and funds management
accounts which have grown most rapidly in recent years, although a brief discussion on
trade-related OBS activities is presented in Part II. The implications of the fiduciary facilities on
several areas are studied in Part III: First, their possible effect on the solvency and liquidity risks
Of banks are looked into. Second, their effect on the structure of the banking industry is studied.
Since these are in essence alternatives to the traditional deposits and deposit substitutes in raising
funds from surplus units, a competitive structure would be preferred to a set-up where only a few
banks dominate. Evidence on this, however, show the opposite. The trust industry is less
competitive than the commercial banking industry itself or the industry structure based on
balance sheet operations which is already suspected of being oligopolistic (Tan 1989).
History
Publisher
Philippine Institute for Development Studies
Citation
Zingapan, M.S.V., M.B. Lamberte & J.T. Yap (1990) Off-balance sheet activities of commercial banks in the Philippines. Working paper series, 9025. Manila : PIDS.