good governance archipelago, we benefit from an exchange of ideas, sharing of competencies, and strengthening of linkages. for most, the bsp ’ s functions are esoteric : controlling inflation, effective banking supervision, and ensuring a safe and efficient payments and settlements system. as proof of their successful accomplishment, there are numbers and graphs. there are also awards and international recognition. but these do not drive the island ’ s narration. while we are proud of the figures and commendations, the real story lies in opportunities created and actual filipino lives improved. when the bsp adopted the inflation targeting framework in 2002, it became more effective in upholding a low and stable inflation environment. for the last six years, it has met the inflation target. inflation expectations are well - anchored. economic growth is supported. uncertainty is reduced. on a micro - level, informed decisions on consumption, investment, saving, and production can be made. traders may hedge against risks related to the fluctuating cost of raw materials and finished goods. income equality is promoted as the purchasing power of the poor is protected. because of the country ’ s strong economic fundamentals, there is positive differentiation by global investors. investments are sustained. bis central bankers ’ speeches our solid fundamentals create buffers against uncertainties, preserving macroeconomic gains. credit rating agencies 1 and international financial institutions 2 have recognized the country ’ s inflation performance. growth projections are favorable. last december, moody ’ s raised its rating a notch above minimum investment grade. it cited the government ’ s efforts to sustain relatively low and stable inflation. in 2013, the bsp was named best macroeconomic regulator in the asia pacific region by the asian banker. to thrive in a fluid and interconnected world, the bsp adopts a foreign exchange rate policy, which is essentially market - determined. official action only limits excessive price movements. to achieve financial stability, we pursued progressive and prudent banking reforms. we aligned the regulatory framework to international standards, while maintaining sensitivity to domestic conditions. among others, we adopted basel 3 capital reforms. we set higher risk management and governance standards for our supervised financial institutions. we institutionalized more effective examination and off - site monitoring processes. the industry ’ s risk exposures are better monitored through stress tests of banks ’ balance sheets and stress test limits for real estate exposures. in 2014, the asian banker granted us the “ best conduct of business regulator award. ” and we are happy to report that from 2012 to 2014

##bankable msmes can now access bank credit facilities. they need not resort to informal sources of lending at unconscionable interest rates. jobs are created and businesses have expanded. beneficiaries report an improved quality of life. some even relayed that their children can now go to school. these are real results. we are also happy to report that the bill recognizing the csf as a legal entity passed bicameral conference just last week in congress. through our philpass remit, overseas filipino workers can send money remittances to their families through the bsp ’ s real time gross settlement system. this enabled a fixed back - end processing fee of php 50 per transaction. the resulting significant reduction in fees influenced other non - bank remittance companies to lower their own remittance fees. the video also featured our economic and financial learning program. the eflp is important, as we believe that a well - informed citizenry in economics and finance can contribute meaningfully to development, and can benefit more from the opportunities it brings. to date, the program has reached 79 out of the 81 provinces. we also have financial learning campaigns for ofws. this september, we sent financial education materials to embassies and consulates abroad to disseminate to ofws. the video also mentioned our focus on consumer protection. in a recent diagnostic review, the world bank described this focus as “ impressive ”. it noted the bsp ’ s regulations on truth in lending, credit cards, e - banking, investment products, lending practices, confidentiality, data protection, product cross - selling and compliance systems. but what is the backstory behind these breakthrough results? again, it began with a vision : to be a catalyst for a globally competitive economy and financial system that delivers a high quality of life for all filipinos. we recognized the need for strategic direction to ensure effective mandate delivery. our supporting and enabling governance mechanisms significantly contributed to present successes. they are essential too in sustaining them. we believe good governance is not just about complying with the law. rather, it is a value adding proposition. it makes us very intentional in how we deliver on our mandates. we commit to the principles of integrity, accountability and transparency, ownership and voice, strategic direction, and responsiveness. we believe this creates trust and credibility. we believe this whole - heartedly. for the opportunity to share the bsp ’ s breakthrough results, we thank the institute of corporate directors