Deviations of these variables from their normal threshold levels (estimated based on previous crises) are taken as warning signals of a possible crisis occurring within a specified time frame. 2. The Philippine Financial Stress Index (PFSI) measures the degree of stress in the financial system with the use of 10 high-frequency data on bonds, foreign exchange, equities markets in both external and domestic markets.
A positive PFSI thus indicates that the level of financial stress is above the historical average, while a negative value signifies that the level of financial stress is below the historical average. 3. The BES Confidence Index (CI) presents the prospective outlook of the business sector on the macroeconomy. It depicts entrepreneurs’ views of the general business situation in the Philippine economy. 4.