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Title: Foreign Capital and Familial Control in Philippine Banking : essays on method, accommodation and competition.
Author: Dos Santos, Paulo Leonardo
Awarding Body: School of Oriental and African Studies (University of London)
Current Institution: SOAS, University of London
Date of Award: 2007
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Abstract:
This dissertation examines the relationship between the familial and relational bases of the Philippine banking system and the series of liberalisation initiatives pursued since 1972. It shows that the relaxation of restrictions on the operations of foreign banks since 1995, while changing important aspects of the functioning of Philippine banking, has strengthened the system's familial basis and the dependence of top banks on relational practices. Through the use of a triangulation of econometric, questionnaire and qualitative methods, it is shown that foreign competition has forced domestic universal banks to narrow spreads and undertake non-price measures aimed at their extensive margins. Competitive pressures exerted by foreign banks have also led to an increase in the concentration of familial control of the system, and an increased reliance by top Chinese-Filipino banks on relational business. These competitive responses suggest the interactions of the familial and relational bases of Philippine banking with foreign capital are complex, requiring a broad-based framework for their analysis. For that purpose this dissertation develops a historically rooted framework for analysis of the social relations defined by Philippine banking. This is accomplished through a critical discussion of subjectivist and Marxian theoretical approaches to the nature and evolution of banking-credit relations and their relationship to capitalist accumulation. Approaches founded on individualism are found to be too narrow, particularly for analysis of combined social formations p laying a role inc redit relations. Neoclassical information-theoretic approaches are shown to provide little beyond a logical reconciliation between banking and methodological individualism, 6ffering few insights on either banking relations or knowledge flows. Neo-Austrian approaches offer insights into knowledge flows in banking relations, but are shown to be analytically limited by their exclusively subjectivist understanding of such flows. The framework adopted here is founded on Marxian political economy and is based on analysis of flows of loanable money, the difficulties posed in securing particular avenues for money's general ability to self-expand, and of the social relations developing and mediating these processes. The framework can explicate the importance of broader social relations and practices in banking, suggesting that analysis ofthe Philippine banking system and its familial form requires understanding their historical, social and cultural origins in the development of the Philippine political economy. Based on such analysis, this dissertation rejects the common interpretation of the recent strengthening of the familial and relational bases of Philippine banking as a result of incomplete or corrupted implementation ofreform initiatives. This phenomenon is understood as the most recent embodiment of the broad pattern of accommodation between foreign capital and top domestic elite families that has characterised the development of the Philippine economy and banking system. This accommodation, inexplicable on individualist terms, is likely to bear on the long-term outcomes of foreign entry and shape the future development ofthe Philippine banking system.
Supervisor: Not available Sponsor: Not available
Qualification Name: University of London, 2007 Qualification Level: Doctoral
EThOS ID: uk.bl.ethos.487756  DOI: Not available
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