amando m tetangco, jr : great significance and consequences speech by mr amando m tetangco, jr, governor of bangko sentral ng pilipinas ( bsp, the central bank of the philippines ), at the 2016 awards ceremony and appreciation lunch for bsp stakeholders with theme “ sustained partnership, sustained economic growth ”, manila, 13 july 2016. * * * i am particularly pleased to welcome all of you to this 2016 annual awards ceremony and appreciation lunch for bsp stakeholders. this is the 13th year we are hosting this annual gathering. our objective is simple, but to us, quite significant. ladies and gentlemen, we want to thank all our partners and stakeholders who support and work with us in the pursuit of the bsp ’ s mandate, policies, and programs. we want to celebrate and strengthen our partnerships that have resulted in the formulation of appropriate monetary and banking policies ; the dissemination of information that protects and empowers our people ; and the implementation of financial inclusion programs across the country that support good money habits and spur economic activities for more inclusive growth. this month marks the 23rd anniversary of the bangko sentral ng pilipinas. in other words, our annual awards ceremony and appreciation lunch for bsp stakeholders is a highlight of the bsp ’ s anniversary celebration. indeed, the bsp values its stakeholders and partners. in 2004, we started this ceremony with 10 awards. today, we are giving 35 awards in the national capital region alone ; a total of 93 awards will be given in other parts of the country. this is because support for the bsp continues to expand and deepen across the country. thus, even as we face national and global challenges, we continue to move forward, traverse uncertainties, and achieve positive results. for this year ’ s celebration, our theme is “ sustained partnership, sustained economic growth. ” we want to underscore that mutual commitment to our continuing partnership helps us sustain economic growth ; growth that generates jobs and improves the lives of filipinos. as you know, our partnership comes in various forms. among others, the submission by our survey respondents of timely, accurate and complete information helps the bsp craft and calibrate effective monetary and financial policy decisions. these are important as they affect our economic fundamentals. more specifically, our partners who provide information keep us abreast of perceptions on price movements, help us monitor the country ’ s transactions with the rest of world, assist us in evaluating emerging

we have also enhanced the reporting governance of banks. we have seen significant progress in the adoption of basel iii reforms, particularly in the areas of capital, leverage, liquidity and regulation of systemically important banks. more recently, we have rolled out a four - phased program for liquidity risk management. the first phase, which was approved by the monetary board through circular no. 981, covers guidelines on liquidity risk management, including intraday liquidity. next in the pipeline are amendments to the lcr standard and issuance of the complementary minimum liquidity ratio ( mlr ), a simplified version of the lcr requirement for less complex financial institutions. third, we will issue guidelines implementing the net stable funding ratio ( nsfr ) standard to ensure that banks have adequate long - term stable funding. lastly, the bsp will issue intraday liquidity reporting guidelines to complement the qualitative intraday risk management guidelines under circular no. 981. in line with the upcoming full adoption of the philippine financial reporting standards financial instruments ( pfrs 9 ), a consultative document on the “ expected credit loss ” model was released. in 2014, bsp started preparing banks on the use of the expected loss methodology through circular no. 855. parallel to this, we will enhance the pillar 3 disclosure requirements for incorporation in banks ’ annual reports. the guidelines on accreditation of external auditors across sectors are also being reviewed. these reforms promote market discipline, transparency, and resiliency. financial market development part and parcel of our strategic policy reforms is to accelerate financial market development with particular focus on local currency debt and foreign exchange ( fx ) markets. we envision a more balanced financial ecosystem where the banking system is complemented by a deep and liquid capital market. this can support the long - term financing requirements of corporates and the government, particularly with the “ build, build, build ” program roll out. as you know, the bsp, in collaboration with the sec, dof and the bureau of the treasury ( btr ) is working on a package of initiatives to be rolled out in a sequenced approach to ensure smooth implementation. the reform agenda will officially start with the launch of the government securities repo program on november 27 2017, in coordination with industry associations. through nine waves of reforms since 2007, the bsp has undertaken measures to liberalize the foreign exchange ( fx ) market. currently, we are pursuing even more ambitious fx reforms aimed at deepening the fx market