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Balance Sheet Approach (BSA)

Macroeconomic Statistics

This course, presented by the Statistics Department (STA), provides participants with the necessary skills to compile and analyze the BSA matrix – a three-dimensional financial statistics. STA has developed a BSA tool, which combines the balance sheets of the main sectors of an economy, namely the financial sector, central government, nonfinancial corporate and household sectors, and the external sector into a single matrix to generate a sectoral distribution of claims and liabilities in a “from-whom-to-whom” basis. The course will guide country officials through the process of generating a BSA matrix using financial, fiscal, and external sector statistics. By analyzing the BSA matrix, officials can understand overall balance sheet linkages and identify specific exposures and ...

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Target Audience

Officials at central banks, ministries of finance and other agencies responsible for (i) compiling monetary and financial statistics, government finance/debt statistics, and external sector statistics; (ii) the supervision and regulation of financial institutions; and (iii) conducting financial stability or macro-financial analyses.  

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Qualifications

Participants are expected to have a degree in economics or statistics, or equivalent experience.  

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Course Objectives

Upon completion of this course, participants should be able to:  

  • Compile the BSA matrix using monetary, government, and external sector data. 
  • Review and summarize the source data used for preparing the BSA matrix and identify critical data gaps for their respective countries.  
  • Prepare work plans for addressing these data gaps over the medium-term, in order to provide national policy makers with an analytically useful BSA matrix. 
  • Use the BSA matrix information for the identification of balance sheet imbalances, exposures, and risks to shocks such as sudden capital outflows or sharp exchange rate depreciation. 
     
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