Nestor A Espenilla, Jr: Committed Speech by Mr Nestor A Espenilla, Jr, Governor of Bangko Sentral ng Pilipinas (BSP, the central bank of the Philippines), at the Signing of the Memorandum of Agreement between the Bangko Sentral ng Pilipinas and the Philippine Payments Management, Inc. (PPMI), Manila, 12 January 2018. * * * Fellow members of the Monetary Board, Antonio S. Abacan and Felipe M. Medalla, Chairman of Philippine Payments Management, Inc. (PMMI), Mr. Justo Ortiz, PPMI Board members; guests and leaders of the payments industry; E-Peso team (led by Mr. Mert Tangonan); fellow BSPers, ladies and gentlemen, a very good morning to all of you. In today’s programme, this part – this message – is identified as “the keynote address”... there are various definitions of “keynote”... with its main purpose being, “to arouse interest, unity, and enthusiasm in a group.” But there is no lack of interest, unity and enthusiasm here. There is, and has been ...since the launch of the NRPS initiative in December 2015... great commitment to the vision of creating an inter-operable ecosystem supporting fluid electronic fund transfers and payments from one account to another. It was only on August 30 last year that Philippine Payments Management was incorporated... from then until this day, there was, no doubt detailed preparation, collaboration and discussions between us... We know that all great and worthy goals are reached in sure, purposeful and determined steps. We at the Monetary Board and the Bangko Sentral thank PPMI for taking yet another step with us, manifested by the earlier signing of our Memorandum of Agreement. Thank you for being here today, not only in your individual capacities as distinguished executive officers of the dynamic financial institutions you represent...not in only in your impressive roles as members of the Executive Committee of the Bankers Association of the Philippines... But as members of the Board of the Philippine Management, Inc.... as a collegial body... as chief stewards of a modern, responsive and globally-competitive Philippine retail payment system. The signing of our memorandum of agreement marks certain mutual recognitions and binds us each, to worthy undertakings. On our part, the signing of the MOA cements and formalizes our recognition of PPMI as THE industry-led self-governing payment system management body for retail payment systems in the country. The MOA also expresses our commitment to provide continuing guidance so that the industry’s activities remain aligned and harmonized with the NRPS Framework. We at the BSP thank the Chairman Tito and PPMI for this declaration of support and dedication. We note with gratitude, your acknowledgment of the BSP’s crucial role as primary overseer of the nation’s payment systems. As our reliable and invaluable ally, we have no doubt that PPMI will support the proper implementation of the NRPS framework; ... monitor compliance with its principles; ... conformance to agreements of our automated clearing houses (ACHs) ... and will be powerfully instrumental in strategically driving electronic payments through these ACHs (ACHs that have been, and are yet to be launched). We look forward to how PPMI will seize opportunities presented by technological innovations to 1/2 BIS central bankers' speeches improve operational efficiency... We anticipate that it will engage service providers with robust systems and infrastructures... We are confident it will lead and assist as novel products and services that cater to the evolving needs of clients here and abroad are developed... We anticipate that PPMI will formulate strategies infused with system-wide, and industry-wide perspectives rather than limited and restricting institution-centric approaches. What exciting prospects for us all! More so, what empowering possibilities for so many Filipinos! I believe we are mutually committed to this endeavor because we realize it shall have a great effect on many of our countrymen. We know that widespread implementation of interoperable payments will boost the ordinary Filipino’s confidence to make economic decisions. We hope that capabilities – even of the now unserved and underserved – to execute financial transactions will be increased! Today, this day of Commitment, is indeed another NRPS milestone worth celebrating. I close with the exuberant declaration that we in the BSP, affirm and celebrate our partnership with PPMI. Together, we are allies and catalysts for revolutionary reforms in the payment space and in pursuing NRPS goals. 2/2 BIS central bankers' speeches