the country ’ s gross international reserves remained substantial at us $ 108 billion. this buffer represents 10. 8 months ’ worth of import cover. it is also equivalent to about 5. 4 times the country ’ s short - term external debt based on residual maturity. domestic liquidity 1 / 6 bis central bankers'speeches meanwhile, domestic liquidity is ample. m3 rose by 8. 2 percent year - on - year to p14. 6 trillion in september 2021. the bsp is paying close attention to the dynamics of liquidity in the financial system with an eye toward supporting demand and economic activity. remittances remittances from overseas filipinos remain a reliable source of support for the economy. after a minimal contraction in 2020, cash remittances have rebounded this year. for the first nine months of the year, of remittances were 5. 6 percent higher than the comparable figure in 2020. stability of the banking system the philippine banking system is strong. total assets rose to p19. 9 trillion as of end - august 2021, and deposits are also on an upward trend, standing at p15. 5 trillion. this encourages us to look toward financial intermediation by supervised entities for support for our recovering economy. banks are well - capitalized. the capital adequacy ratios of the universal and commercial banking industry on solo and consolidated bases improved to 17. 0 percent and 17. 6 percent, respectively, in the first half of the year. these remain well above the 10. 0 percent minimum threshold set by the bsp. meanwhile, the gross non - performing loan ratio of the system continues to be manageable, standing at 4. 5 percent in end - august. the npl coverage ratio remains high at 83. 5 percent, providing confidence in banks ’ ability to absorb possible losses. performance of the trust industry the trust industry also continues to grow. after seeing a temporary reduction in the early days of the pandemic, trust assets have rebounded, and have now significantly surpassed pre - pandemic levels. assets under management recorded a double - digit year - on - year expansion of 18. 4 percent, aggregating to p4. 8 trillion by end - june 2021. this is equivalent to 24. 3 percent of the banking system ’ s total assets. the related increase in fees and commissions contributed to the sustained profitability of the industry. the net income of trust institutions rose by p1. 0 billion or 33

of funding, as well as provide alternative financing opportunities for infrastructure projects. of course, the program is not a silver bullet. and if policymakers are not careful, it could also pose challenges in the economy. in the long - run, while infrastructure investments promise to support economic growth and employment, unforeseen large external demand and price pressures that affect the import requirements of infrastructure projects can, in turn, limit the benefits of improving macroeconomic conditions. other challenges facing policymakers include issues on skilled labor shortage that may cause delay in the infrastructure projects ; budget drawdown issues ; and possible inequity in resource allocation at the local level. 1 / 2 bis central bankers'speeches in this regard, greater policy dialogue and close coordination of relevant government agencies in terms of fiscal planning and budget execution, as well as program planning is a policy imperative. needless to say that the road ahead requires a lot of work. let us start today by making this event a fruitful one through the productive and meaningful exchange of ideas on the topic. in particular, our discussions shall revolve around the following : 1. the developments / issues encountered in the bbb program. 2. funding requirements for the continued and sustainable implementation of the bbb program. 3. impact of the bbb program in the short and medium - term on macroeconomic conditions, namely, inflation, current account, exchange rate, and growth output ; and 4. the possible disadvantageous effects, if any, of infrastructure program on jobs, equity, and the “ crowding out ” of credit and investments. i look forward to have a meaningful exchange of views and ideas on these issues. let me also take this opportunity to thank our speakers in advance for your time and contribution in this exercise, which is part of our effect to look at a broad range of economic and non - economic issues that provide useful insights for policymaking. rest assured, your insights will serve as useful inputs to the bsp ’ s conduct of monetary policy, as we all strive to build the “ hardware ” that would propel our country to sustainable and inclusive growth. thank you and mabuhay tayong lahat! 2 / 2 bis central bankers'speeches