##balances. similarly to the pre - crisis situation, advanced economies ’ indebtedness would be financed with capital flows from emerging economies. this implies not only a massive misallocation of global capital, but also undermines the credibility of any initiative to rebalance savings and investments both within and across the main regions of the global economy. as a result, it risks creating – once again i should say – delusional expectations in financial markets about the sustainability of imbalanced financial and trade flows. policy discussions are likely to return to where they were a few years ago. the crisis has given us the opportunity to question their analytical and practical basis. there are concerns regarding the burden of adjustment on deficit countries and its impact on the world economy. if debtor countries adjust internal imbalances and raise national savings – thus avoiding the scenario of resurging global imbalances – which country would then act globally as the consumer of last resort? in other words, can we avoid a scenario in which there is protracted slow growth across all regions of the global economy until imbalances are eliminated? admittedly, this is not a new question, but it is more pertinent than ever. the typical answer is that, in order to avoid the slowdown, surplus and, in particular, creditor economies should rebalance growth within their economies by increasing domestic demand, strengthening non - tradable sectors and reducing reliance on export industries. thus the policy recommendation to surplus countries is to stimulate domestic demand, in particular through fiscal policies or structural reforms aimed at reducing the level of net savings. the problem is that surplus countries are in surplus in the first place either because they are fiscally more conservative, at least compared with the more profligate countries – and rightly so i should add – or are facing a situation in which private savings are very high and might even increase if public dis - savings were to rise. since surplus countries are reluctant to embark on expansionary domestic demand policies, the correction of payments imbalances is faced with some form of asymmetry, a situation that is often disliked by deficit countries. at the global level it has at times been used by the latter as an excuse for delaying adjustment. global imbalances are the result of a lack of policy coordination. it seems to me that we need better economic analysis in order to address this issue. first, we need to understand whether a given level of world growth, if achieved through unsustainable

benjamin e diokno : inclusion and digital transformation - a collaborative approach to regulating fintech speech by mr benjamin e diokno, governor of bangko sentral ng pilipinas ( bsp, the central bank of the philippines ), at the finance executives breakfast roundtable, manila, 11 october 2019. * * * good morning, ladies and gentlemen. it is always a pleasure to engage with key stakeholders of the finance industry as it gives us the opportunity to advance the bsp ’ s advocacies. in fact, today ’ s theme of “ collaborative approach to regulating fintech ” is exactly how we envision the landscape of overseeing the increasingly disruptive, yet, vibrant narrative of fintech developments. over the past couple of years, innovative solutions through technological advancements have transformed the delivery of financial services by offering alternative and far convenient ways of executing financial transactions. it has empowered the unbanked and underbanked to participate in the economy through easier access to financial services. indeed, fintech players are moving ahead of the curve by developing solutions that aim to expand delivery channels and trim unnecessary processes towards providing greater efficiency and convenience for customers. we, at the bsp, emphasize our support for such endeavors. we view innovators as enablers of financial services that help us boost our financial inclusion agenda. the number of fintech players in the philippines have gradually been growing in the past three years with most, or around 75 % of the total providing payments, alternative financing, and remittance services. 2018, in particular, has been a key period for blockchain and virtual currencie. there has been an increasing amount of bsp supervised financial institutions that have leveraged on fintech to support their business strategies and manage day - to - day business processes. this prompted us to craft appropriate regulations to safeguard public interest while fully recognizing that these technological innovations can contribute to a more inclusive and safe financial ecosystem. our approach to regulating fintechs is shaped by three principles, ( a ) first, we ensure that regulation is risk - based, proportionate and fair, ( b ) second, we maintain active multi - stakeholder collaboration, ( c ) and lastly, we ensure that innovations must work for the benefit of consumers, especially the most vulnerable ones. guided by these principles, came the rise of our three - lane fintech roadmap that is crafted to nurture a regulatory environment that allows innovations to flourish, yet still mindful that risks