concept of the “ home market ” well beyond their home country ’ s borders. for example, nordic parent banks continued to provide liquidity to their baltic affiliates even during the years of the deepest crisis in the baltic economies. in today ’ s slow growth environment, it remains important for competitiveness and growth that there should be an appropriate level of financing in the whole region. the broader concept of the “ home market ” should be developed further. one of the challenges will be to ensure strong competition in retail markets so that the benefits of integration could be felt by consumers across the region. fostering sustainable growth in the region requires us to take a systemic view when designing harmonized regulation for the financial sector, and this is where the quality and proactivity of macro - prudential supervision becomes so important. the nordic - baltic dimension adds two nuances to the design of macro - prudential policies. first, our own experience of the past decade was a stark reminder of the particular challenges of managing capital flows in highly integrated economies and financial sectors. second, most of the large nordic banking groups have been considered as too big to fail in almost all countries in the region. bis central bankers ’ speeches diversity in the financial sector structures is a challenge for cross - border cooperation as i said earlier, the economies and financial sectors of the nordic - baltic region are diverse as well as closely integrated. different countries in the region have opted for different policy frameworks ; the structure of the financial sector also differs by country. it turns out that in a region of only eight countries, some of which are very small, one needs to tackle very much the same array of problems that make the coordination of financial sector policy and supervision so challenging in europe. there are home and host countries ; there are non - eu member states, eu member states, and euro area member states. there are differences in economic, lending and asset price cycles, and there are also differences in economic history, crisis experience and institutional arrangements. the developments in recent years have exacerbated these dissimilarities and perhaps even created new ones. it appears to me that the success in combining the positive aspects of diversity and integration in the nordic - baltic region may serve as a model for the european union. if cooperation and coordination has been possible in this region, there is reason to hope for the same in the european union as a whole. cooperation between the institutions responsible for financial stability in the region has a history of over 10 years.

in closing, i leave you with these key take - aways : 4 / 5 bis central bankers'speeches the asean - 5 economies, including the philippines, are expected to rebound in 2021, though downside risks continue to dominate. improved global economic growth prospects and country - specific improvements amid vaccine developments and sustained fiscal policy support are expected to lend support to these economies ’ growth prospects for the year. consensus view expects philippine economic recovery to be broadly in line with the national government ’ s outlook for 2021. sources of optimism on the economy ’ s growth prospect in 2021 stem from the quarter - on - quarter progress in the gdp outturn ; improved business and consumer confidence ; within - target inflation ; ample liquidity in the system ; sound and stable banking system ; and sustained robust external payments position. the bsp remains committed to staying the course : ( a ) maintaining price stability ; ( b ) ensuring financial sector soundness ; ( c ) strengthening resilience against external shocks ; and ( d ) supporting the national government ’ s inclusive growth objectives. thank you. 5 / 5 bis central bankers'speeches