in monetary accommodation. we shall eventually raise policy interest rate as soon as prospects for the economy have materially improved. finally, we shall build our buffers to ensure that the economy is prepared and resilient should another crisis strike. the timing of the exit remains very much uncertain at this juncture. therefore, we leave some room for flexibility in policymaking to account for uncertainty and risk, especially as the situation remains very fluid. inflation and growth outlook over the medium term and the associated risks will continue to guide the timing and conditions of bsp ’ s exit strategy. consistent with the bsp ’ s data - dependent approach to policymaking, the bsp will continue to monitor the evolution of various domestic factors, including liquidity and credit dynamics, financial sector risks, and the state of public health, as well as emerging global developments and potential spillovers. given the nascent state of recovery, our priority is to ensure the sustainability of the recovery and prevent long - term scarring effects. having said this, the bsp is mindful of the need to strike a delicate balance between providing adequate stimulus to the economy and preventing the buildup of inflationary pressures and risks to financial stability. moving forward, the bsp ’ s actions and policy thrusts will continue to be anchored on its core mandates. on monetary policy : the bsp will remain vigilant to ensure that the monetary policy stance continues to support economic recovery to the extent that the inflation outlook allows. on the financial sector : the bsp will intensify its monitoring and surveillance of supervised institutions to ensure they remain responsive to emerging risks and will promote continued soundness, stability, resilience, and inclusivity of the banking system. on the external sector : the bsp will remain supportive of policies that will help strengthen the economy ’ s resilience to external shocks. these include maintaining a market - determined exchange rate, keeping a comfortable level of reserves, and keeping the country ’ s external debt manageable. in closing, i would like to highlight that the sound macroeconomic fundamentals of the country will carry us through the recovery process. the bsp will continue to support the economy for as long as necessary. monetary policy will complement efforts by fiscal authorities to achieve full recovery of the economy within the soonest possible time. thank you for your attention. 4 / 4 bis central bankers'speeches

as of end - september 2021, capital adequacy ratio ( car ) of universal and commercial banks improved to 16. 9 percent and 17. 4 percent on solo and consolidated bases, respectively, from the previous year ’ s 16. 3 percent and 16. 7 percent. banks ’ risk - taking activities are supported by adequate and high - quality capital. as of endseptember 2021, the common equity tier 1 ratio of universal and commercial banks improved to 15. 7 percent and 16. 3 percent on solo and consolidated bases, respectively, from the previous year ’ s 15. 5 percent and 16. 0 percent. liquidity buffers also remained well - above the minimum threshold of 100 percent. in particular, the universal and commercial bank industry ’ s solo liquidity coverage ratio reached 197. 7 percent as of end - november 2021, while the net stable funding ratio stood at 142. 8 percent on solo basis as of end - august 2021. the minimum liquidity ratios of stand - alone banks surpassed the 20 percent minimum. looking ahead, the philippines aims not only to regain what was lost from the covid crisis. we want the post - covid - 19 economy to be stronger, more technologically advanced, more sustainable, and more inclusive than ever before. on our end, we have two major objectives under our digital payments transformation roadmap • first is to have at least half of financial transactions in the country done digitally ; and second, to onboard at least 70 percent of filipino adults into the formal financial system through transaction account ownership. with the pandemic as a catalyst, we are on our way to achieve this goal sooner rather than later. on sustainability, the bsp has issued regulations requiring banks to adopt sustainability principles in their operations, such as by extending funding for green projects. finally, let me outline our exit strategy from our extraordinary monetary accommodative measures. the bsp ’ s exit strategy will begin with the recalibration of the bsp ’ s monetary operations to 3 / 4 bis central bankers'speeches ensure that our accommodative monetary policy translates to short - term interest rates. next, we unwind liquidity - infusing measures, such as provisional advances to the government and alternative compliance with reserve requirements. the bsp looks to gradually unwind its direct funding support to the national government with the expected improvement in government ’ s finances. the unwinding process has started. the third component entails the reduction