the amendments to the foreign investments act, which will encourage foreign professionals to bring their practice, know - how, and technical expertise to the philippines. with these game - changing reforms, we can achieve real change in the lives of ordinary filipinos through more and better jobs and more competitive economy. at this juncture, allow me to introduce the polymer banknote, which will begin circulation by the middle of this year. in line with global best practices, the bsp continually seeks ways to improve philippine currency. for comparison, central banks around the world improve the designs of their banknotes every 10 years, on average. our current series of banknotes first went into circulation more than 10 years ago. compared to paper banknotes, polymer banknotes are more hygienic, difficult to counterfeit, durable, cost - effective, and environmentally friendly than paper banknotes. the chemical component of a polymer banknote makes its surface smooth and resistant to dirt, 2 / 3 bis central bankers'speeches bacteria, and viruses. polymer notes can be washed and sanitized without damage, unlike paper bills. the production of polymer notes enables the adoption of more security features, which deters counterfeiting. polymer notes are estimated to last at least 2. 5 times longer than paper banknotes and can withstand extreme temperatures. for this reason, polymer notes need to be replaced less frequently, reducing the overall cost of banknote production. moreover, when no longer useable due to wear and tear, polymer banknotes can be recycled into various products, such as building materials and furniture. so not only are polymer notes more sanitary and secure, they are also cost - effective and sustainable. now before i end, allow me to share some food for thought. every now and then, an unprecedented crisis will come along that will naturally consume the time and effort of our politicians and policymakers. the appropriate behavior is to address the core of the crisis and not let the pandemic derail our long - term goals. let us continue working not only to regain our pre - pandemic trajectory, but to achieve a steady and sustainable path of development. thank you very much for your attention. 3 / 3 bis central bankers'speeches

##s. short - tenors are not the natural match for the longer - term funding needs of entrepreneurs and corporate borrowers. our idea of capital market reform is not a question of the dominance of one product over the other. also, we do not expect an overnight shift in the funding structure from bank credit to market securities. there are good reasons why we would like to see more securities issued relative to loans just as there are reasons why the system is currently heavily reliant on bank loans over any other funding source. what we wish to underscore, instead, is that having the right balance between bank credit and access to capital markets is essential in order to properly manage systemic risks. this has been the key lesson from the recent global crisis. the new prudential norm of financial stability requires that we take a holistic view of how and where risks develop, keeping in mind that markets are all inter - connected. to help create that healthy balance between bank lending and capital market as a source of funding for the corporate sector, the bsp has been working towards the development of a benchmark yield curve that has depth and breadth. related initiatives also cover, among others, price - related initiatives such as the overnight index swap ( ois ), the calculation of implied zero rates, the oversight of repos and the introduction of strips. we are also looking at the financial infrastructure requirement for the capital markets. from data capture within a price discovery function to the repository of all trade transactions and to auxiliary services such as central counterparties, securities settlement, trading platforms and central securities depository. these initiatives are but a portion of a long “ to - do ” list. the capital market reform agenda is huge and the barriers are formidable … but … as the characters in the broadway play, wicked, would sing, we must go beyond our limitations and … “ defy gravity. ” concluding thoughts moving ahead does not happen on its own. progress has to be moulded, packaged and timed. if we are to sustain the momentum of growth and expansion in our bid to move beyond investment grade, capital market reform must be integral to this strategy. if tomorrow is to be better and brighter, we must ensure that we have the overall support system to reap future rewards. we have to instil real change. only then can we really obtain the benefits of going “ beyond investment grade ”. on that note, i wish everyone a productive conference. bis central bankers ’ speeches