The document discusses how the Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, assesses the overall financial condition of the country. The BSP monitors economic indicators and conducts analysis of financial data. It uses tools like examining demographic characteristics, government expenditures, GDP, and inflation. Other agencies involved include the Department of Finance, which is responsible for the country's financial resources and fiscal policy. Assessing the condition involves analyzing indicators such as debt levels, budget deficits, and credit ratings.

1. ASSESSING FINANCIAL
CONDITION
UNCOVERING FINANCIAL TRENDS: AN ANALYSIS OF ECONOMIC AND DEMOGRAPHIC
CHARACTERISTICS; AND EXPENDITURE AND PROFILE ANALYSIS
P R E S E N T E D B Y : K R I S T Y G . D E L A P E Ñ A
MPA457

2. OVERVIEW
ASSESSING FINANCIAL
CONDITIONS OF THE PHILIPPINES
AGENCY RESPONSIBLE FOR
FINANCIAL ASSESSMENT
HOW TO ASSESS FINANCIAL
CONDITIONS
TOOLS USED FOR FINANCIAL
ASSESSMENT: ECONOMIC AND
DEMOGRAPHIC CHARACTERISTICS
TOOLS USED FOR FINANCIAL
ASSESSMENT: EXPENDITURE
PROFILE AND ANALYSIS
PHILIPPINE EXPENDITURE
PROFILE
ANALYSIS OF GOVERNMENT
EXPENDITURES
PHILIPPINE ECONOMIC AND
DEMOGRAPHIC CHARACTERISTICS
EXPENDITURE PROFILE AND
ANALYSIS

3. ASSESSING FINANCIAL
CONDITIONS IN THE PHILIPPINES
The Bangko Sentral ng Pilipinas (BSP) is the central bank of the Philippines and
is responsible for ensuring price stability and promoting economic growth.
The BSP is tasked with ensuring price stability, promoting economic growth,
and maintaining a stable financial system in the Philippines.
As part of its mandate, the BSP conducts regular monitoring and analysis of
economic and financial indicators to assess the overall financial condition of
the country.
Bangko Sentral ng Pilipinas. (n.d.). About BSP. Retrieved from https://www.bsp.gov.ph/AboutTheBank/about_bsp.asp

4. ASSESSING FINANCIAL
CONDITIONS IN THE PHILIPPINES
Debt-to-GDP ratio: This measures a country's debt relative to its GDP. For
example, in 2020, the debt-to-GDP ratio of the Philippines was 54.5% (World Bank,
2022).
Budget deficit/surplus: This refers to the difference between a government's
spending and revenue in a given year. For example, in 2020, the Philippines had a
budget deficit of 9.6% of its GDP (International Monetary Fund, 2021).
Credit ratings: This is an assessment of a country's ability to repay its debts. For
example, in 2021, the credit rating of the Philippines was BBB+, which is
considered investment grade (Fitch Ratings, 2021).
World Bank. (2022, February 2). Philippines. Retrieved from https://data.worldbank.org/country/philippines
International Monetary Fund. (2021, May 28). IMF Executive Board Concludes 2021 Article IV Consultation with the Philippines. Retrieved from https://www.imf.org/en/News/Articles/2021/05/28/pr21175-
philippines-imf-executive-board-concludes-2021-article-iv-consultation
Fitch Ratings. (2021, January 15). Fitch Affirms Philippines at 'BBB+'; Outlook Stable. Retrieved from https://www.fitchratings.com/research/sovereigns/fitch-affirms-philippines-at-bbb-outlook-stable-15-
01-2021

5. AGENCY RESPONSIBLE FOR
FINANCIAL ASSESSMENT
The agency responsible for financial assessment in the Philippines is the
Department of Finance (DOF).
The DOF is responsible for managing the financial resources of the government,
developing and implementing fiscal policies, and monitoring the financial
condition of the country (Department of Finance, n.d.).
The DOF also oversees other government agencies involved in financial
management, such as the Bureau of Internal Revenue and the Bureau of Customs.
Department of Finance. (n.d.). About Us. Retrieved from https://www.dof.gov.ph/about/
Republic of the Philippines. (1987). Executive Order No. 292. Retrieved from https://www.officialgazette.gov.ph/1987/07/25/executive-order-no-292-s-1987-book-iv-title-iv-chapter-1-sections-25-36/

6. HOW TO ASSESS THE FINANCIAL
CONDITION
Gross Domestic
Product (GDP)
Inflation rates
Balance of payments
Employment rates
Trade data
Macroeconomic
indicators:
"Financial Stability Report." Bangko Sentral ng Pilipinas. https://www.bsp.gov.ph/PUBLICATIONS/REGULATIONS/PRs/2018/2018_PR003_FSR.pdf
"Banking Sector Stability Report." Bangko Sentral ng Pilipinas. https://www.bsp.gov.ph/PUBLICATIONS/REGULATIONS/PRs/2020/2020_PR004_BSStabRpt.pdf
Bank capital adequacy
ratios
Non-performing loan ratios
Liquidity ratios
Credit risk indicators
Market risk indicators
Financial stability indicators:
Scenario analysis
Sensitivity analysis
Contingency planning
Risk management
frameworks
Stress testing:

7. TOOLS USED FOR FINANCIAL ASSESSMENT:
ECONOMIC AND DEMOGRAPHIC
CHARACTERISTICS
Labor force surveys
National accounts data
Input-output analysis: This is a method of analyzing the interdependencies
between different sectors of the economy.
Demographic analysis: This involves analyzing population data to understand
trends in areas such as age distribution, workforce participation, and migration.
Econometric models: These are statistical models used to analyze and forecast
economic variables.
Examples of data sources used in these analyses include:
Census data:
"Input-Output Analysis." National Statistical Coordination Board. http://www.nscb.gov.ph/statistical-
standards/sectoral-statistical-classification/input-output-analysis.asp
"Philippine Population and Housing Census." Philippine Statistics Authority. https://psa.gov.ph/content/highlights-
philippine-population-and-housing-census-2010
"Labor Force Survey." Philippine Statistics Authority. https://psa.gov.ph/statistics/survey/labor-force
"National Accounts." Philippine Statistics Authority. https://psa.gov.ph/statistics/accounts/national

8. TOOLS USED F R FINANCIAL ASSESSM ENT:
EXPENDITURE PROFILE AND ANALYSIS
Monetary and credit aggregates: These are measures of the money supply and
credit levels in the economy.
Balance of payments analysis: This involves analyzing the inflows and outflows of
money in the economy, including exports, imports, and foreign investment.
Financial soundness indicators: These are measures of the financial health of
banks and other financial institutions.
Examples of data sources used in these analyses include:
Monetary and financial statistics
Trade statistics
Balance of payments data

9. EXPENDITURE PROFILE
Government spending: This includes the budget allocated for public services
such as healthcare, education, and infrastructure.
Personal consumption: This refers to the spending of individuals and
households on goods and services.
Investments: This includes the capital expenditures of businesses and the
government.
·Philippine News Agency. (2021, December 28). DepEd receives P1.1-T budget for 2022. Retrieved from https://www.pna.gov.ph/articles/1162549
·Philippine Statistics Authority. (2021, October 7).Q2 2021 National Accounts of the Philippines: Final Consumption Expenditure (FCE) of Households Amounted to PHP 6.1 Trillion. Retrieved from
https://psa.gov.ph/national-accounts/national-income-expenditure-accounts/national-accounts-philippines/latest-release
·Department of Finance. (2021, January 1).Build, Build, Build: Delivering Philippine Infrastructure. Retrieved from https://www.dof.gov.ph/build-build-build/

10. ANALYSIS OF EXPENDITURES
Cost-benefit analysis: This compares the costs of a project or program with its
expected benefits.
Performance evaluation: This measures the effectiveness of a project or
program in achieving its objectives.
Financial statement analysis: This examines the financial health of an
organization by analyzing its financial statements.
Financial ratios: This refers to the analysis of a company's financial statements
to assess its financial performance.
Value-added analysis: This measures the value added by each sector of the
economy.
Briones, L. (2018). The K-12 Program and Its Effects on Philippine Education. Philippine Institute for Development Studies. Retrieved from
https://pidswebs.pids.gov.ph/CDN/PUBLICATIONS/pidsdps1824.pdf
Department of Health. (n.d.). Performance Evaluation System. Retrieved from https://www.doh.gov.ph/performance-evaluation-system
Bangko Sentral ng Pilipinas. (n.d.). Bank Supervision. Retrieved from https://www.bsp.gov.ph/SitePages/Regulations/Supervision.aspx

11. ECONOMIC AND DEMOGRAPHIC
CHARACTERISTICS
Gross Domestic Product (GDP): This measures the total value of goods and
services produced by a country in a given period.
Inflation rate: This measures the rate at which prices of goods and services
increase over time.
Population size and growth rate: This refers to the number of individuals in a
population and the rate at which it increases.
Poverty incidence: This refers to the proportion of individuals or families whose
income falls below the poverty line.
Unemployment rate: This measures the percentage of the labor force who are
willing and able to work but are not employed.
Human Development Index (HDI): This measures a country's achievements in
health, education, and income.
Philippine Statistics Authority. (2021, January 28). GDP Contracts by 9.6 Percent in 2020. Retrieved from https://psa.gov.ph/gdp-contracts-by-96-percent-in-2020
Bangko Sentral ng Pilipinas. (2022, February 8). January 2022 Inflation Report. Retrieved from https://www.bsp.gov.ph/Publications/MonthlyInflationReports/2022/january.pdf
World Bank. (2022, February 2).Philippines. Retrieved from https://data.worldbank.org/country/philippines

12. EXPENDITURE PROFILE AND
ANALYSIS
Government expenditure: This refers to the spending of the government on goods
and services.
Household expenditure: This refers to the spending of households on goods and
services.
Gross National Saving: This measures the amount of money saved by a country's
residents and businesses.
Department of Budget and Management. (2020). Fiscal Year 2020 Budget. Retrieved from https://www.dbm.gov.ph/index.php/budget-documents/2020
Philippine Statistics Authority. (2021, October 27). 2019 Family Income and Expenditure Survey. Retrieved from https://psa.gov.ph/content/highlights-2019-family-income-and-expenditure-survey-fies
World Bank. (2022, February 2).Philippines. Retrieved from https://data.worldbank.org/country/philippines

13. CONCLUSION
The financial condition of the Philippines is influenced by a variety of economic
and demographic factors, as well as government policies and spending patterns.
Assessing the financial condition of the Philippines requires the use of analytical
tools such as financial ratios, cost-benefit analysis, and value-added analysis.
Indicators such as the debt-to-GDP ratio, budget deficit/surplus, and credit ratings
provide valuable insights into the financial condition of the Philippines.

14. THANK YOU