the banks in discussions to demystify and clarify the concepts behind abif and afif as you operate in an integrated and more globally - active asean market. but even as you prepare for asean integration, i hope that you will always be mindful and never lose sight of the risks before you. always make sure that you operate in a safe and sound manner, keeping in mind the interest of financial consumers who have entrusted their resources with you. finally, i wish to thank the baiphil for its continuing support and cooperation with the bsp in keeping the banking system sound and stable. i particularly thank you for your active participation in the bsp ’ s financial education program by teaching thousands of parents and teachers sound money management. this has enabled our public school teachers to become excellent financial educators, at least two of whom were chosen national awardees under the deped - bsp ’ s guro ng pag - asa awards. the awards were given last tuesday by education secretary leonor briones, yours truly, and members of the monetary board, in the presence of bank industry leaders and baiphil ’ s president liza ortiz and marilen ruiz of your special projects committee. 3 / 4 bis central bankers'speeches baiphil, you walk your talk. you train bank employees and share your financial management expertise with the unbanked and underbanked. all of these to make our banking system stable, inclusive and a channel for promoting inclusive growth. i will always remember baiphil for this. ladies and gentlemen. this is the last time i will join your national convention as governor of the bangko sentral ng pilipinas. i take this opportunity therefore to thank all of you and wish that all your efforts will contribute to make our banking system better, stronger, and more responsive to the needs of our people and our country. maraming salamat! mabuhay po tayong lahat! 1 data taken from the “ asean community in figures 2016 ” published by the asean secretariat. 4 / 4 bis central bankers'speeches

luis m linde : “ the new hegemon or last country still standing ” speech by mr luis m linde, governor of the bank of spain, at the frankfurt finance summit 2014, panel iv : the new hegemon or last country still standing, frankfurt am main, 20 may 2014. * * * as a result of the crisis, the institutional and intellectual setup of european monetary union is being deeply revised. fresh views on the role of stability across several dimensions – including fiscal and macro - financial – have emerged and taken over the old approach of the maastricht treaty. several players, including, indeed, the ecb, are contributing to this overhaul. i would like to review the main elements of the old institutional setup, the weaknesses revealed by the crisis and the way a reinforced culture of stability is contributing to their repair. the monetary union designed in maastricht included, in addition to the ecb and the single monetary policy, a relatively loose governance framework for the euro area based, first, on a fiscal discipline device – the stability and growth pact – and, second, on coordination for the remaining economic policies – the broad economic policy guidelines –. the setup also relied on governments, households and firms being able to internalise the stability patterns required within a monetary union and counted on financial markets penalising those who would not do so. what we observed before the crisis, and what we became painfully aware of when it erupted was, however, that public and private agents in some countries did not change their behaviour, that financial markets did not play any disciplining role and that the loose application of the stability and growth pact and the broad economic policy guidelines rendered them ineffective as stabilisation devices. the pact and the guidelines were not strong enough to prevent the accumulation of a series of imbalances. we also discovered two other gaps during the crisis : too little attention had been paid to how financial markets work within a monetary union and no crisis management mechanism was available. to be stable, the european building needed operational repairs. the stability principles, as conceived in maastricht, were insufficient and a new culture of stability had to take over. the ecb acted on several occasions to curb the so - called “ tail risks ” – the risk of the monetary union breaking up – and to gain the time needed for others ’ actions to bear fruit. it is worth noting, however, that monetary action can hardly go beyond this as the cracks detected in the building were