towards a resilient and inclusive financial sector
DESCRIPTION
Chapter 6 of the Philippine Economic Development Plan 2011-2016TRANSCRIPT
TOWARDS A RESILIENT AND INCLUSIVE
FINANCIAL SECTORTHE PHILIPPINE ECONOMIC DEVELOPMENT PLAN
2011 -2016TRES BIEN
2
Current Structure of the Financial SystemCondition and Performance
ASSESSMENT
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Current Structure of the Financial System
“The Philippine financial system is primarily bank-based rather than capital market-based”
The banking sector plays the primary role in financial intermediation and is the main source of credit in the economy.
Non-bank financial institutions claim only 17 percent of economic output in 2010.
The Philippine Stock Exchange’s (PSE) market capitalization as a percentage of economic output remained small.
Our mutual funds are considered smallest in Asia
Foreign participation in the financial system remains limited
A growing concentration in the high-income and urbanized areas of NCR, Central Luzon, and CALABARZON
Towards a Resilient and Inclusive Financial Sector April 8, 2023
4
Condition and Performance
April 8, 2023Towards a Resilient and Inclusive Financial Sector
Banking Sector- remains the core of the financial system and primary source of credit for the economy
Equities Market- showed signs of recovering from depressed global market sentiments in 2007-2009
Fixed Income MarketTotal volume traded at the Philippine Dealing and Exchange Corporation (PDEx) for 2010 more than double its previous YTD’s level
Foreign Exchange and Bond MarketsThe domestic financial market has started to realize gains from improving market and investor sentiments. The peso strengthened against the US Dollar while sovereign credit spreads tightened
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Institutionalized Generation of Savings and Mobilization of ResourcesAvailable Savings are Primarily Lodged in Short- Term InstrumentsLack of a Thriving Capital MarketImproving the Financial Governance FrameworkFinancial Institutions Concentration in Urban AreasNeed for Legislative Support in Critical Reform Areas
CHALLENGES
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Vision for the Financial SectorMedium-Term Development Plan for the Financial SectorKey Reforms and Objectives TargetsSpecific Reform Strategies
STRATEGIC FRAMEWORK
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Vision for the Financial Sector
April 8, 2023Towards a Resilient and Inclusive Financial Sector
A regionally responsible, development-oriented and inclusive financial system which provides the needs of its diverse public are guided by the following:
Bootom-up development
Top-down infrastracture support
Prices that fully reflect relevant information
Enabling environment for the effective management of risks
8
Medium-Term Development Plan for the Financial Sector
April 8, 2023Towards a Resilient and Inclusive Financial Sector
A good financial system in banking and in capital markets should be assisted by the following guidlines:
A conductive policy and regulatory environment
Progressive adoption of intrnational standards and best practices
Good governance
Transparency for the effective delivery of financial services
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Key Reforms and Objectives Targets
April 8, 2023Towards a Resilient and Inclusive Financial Sector
To achieve 7 to 8% growth in he country's economic output beginning 2011with a minimum of 5% growth annually for 6 years
An increase of US $3000 per capita income over the 6 year period
10% reduce of poverty incidence per year
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Key Reforms and Objectives Targets
April 8, 2023Towards a Resilient and Inclusive Financial Sector
Focus on:
To promote savings generation at the regional level but having deployment of resources at the national level
To developan enabling environment for long-term savings
To strengthen the good governance of financial system that meet the international standards and best practices
To establish a strong legal framework for financial sector development
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Specific Reform Strategies
April 8, 2023Towards a Resilient and Inclusive Financial Sector
Promote a regionally responsive and inclusive financial system through institutionalized savings generation and resource mobilization
Develop an enabling environment for long-term investments
Strengthen the governance framework of the financial system in line with best practices and standards
Establish a strong legal framework for financial sector development
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Oriel Anne Guno
Catherine Grace Custodio
Thank you for listening
April 8, 2023Towards a Resilient and Inclusive Financial Sector