internationally is encouraging. but important issues remain. and it is political resolve that will determine whether we accomplish the credible and robust reforms that our citizens rightly demand, yet preserve the enormous advantages of an internationally integrated financial system. addressing tbtf addressing the “ too - big - to - fail ” ( tbtf ) problem is perhaps the most challenging remaining legacy of the crisis. basel iii will greatly strengthen banking system resilience, but it does not address this problem. the fsb has assessed a broad range of policy options in this area and will present its recommendations to the g20 in november. it is important to recognise that sifis vary widely in structures and activities and that the nature and degree of the risks they pose also differ. some are large, complex highly integrated global financial institutions with activities spanning a range of sectors. others may have a global customer base but are simpler commercial banking operations. yet a third category is entities that are large at a domestic or regional level but nonetheless globally interconnected through wholesale funding markets. whatever their nature, sifis have two things in common : that their uncontrolled failure would cause significant systemic disruption and that we, as authorities, cannot at present resolve them in an orderly fashion without use of public funds. the framework we have agreed to address sifis is therefore based on four necessary pillars. first, we must radically improve our capacity to resolve sifis without disruptions to the financial system and without taxpayers ’ support. effective resolution regimes must advance the goals of both financial stability and market discipline. this means they need to be able to impose losses on shareholders as well as creditors while ensuring continuity of essential financial functions. all countries should have a dodd frank style regime in place. in addition, we need to acquire additional resolution tools. the bail - in of debt holders holds significant attractions both from the perspective of correcting creditor incentives and protecting tax payers. but the legal issues associated with the bail - in in group structures and in a crossborder context are non - trivial. moreover, to be effective backstops in dealing with global firms, national resolution regimes need to converge towards common standards. and these need to be supplemented by cross - border cooperation arrangements underpinned by national law that provides both mandate and capacity for resolution authorities to cooperate. legislative changes will be needed in many countries to enable this. lastly, “ living wills ” will be mandatory for major firms. these will include assessments of firm resolvability. supervisors will

a buildup of distressed assets as a result of the pandemic by selling banks ’ non - performing assets to asset management entities called financial institutions strategic transfer corporations. offloading these items from banks ’ financial statements will support the financial intermediary functions of banks and facilitate the circulation of liquidity within the system. the government financial institutions unified initiatives to distressed enterprises for economic recovery act ( guide ), on the other hand, legislates the provision of financial aid to critical industries that are affected by the pandemic. in addition, the bsp is advocating for the following measures : amendments to the agri - agra law, which will steer lending to agricultural, fisheries, and rural development in the philippines ; amendments to the credit information system act, which will improve accessibility of financial services to micro, small, and medium enterprises ; amendments to laws on secrecy of bank deposits, which will put more teeth to efforts against money laundering and tax evasion, and further promote integrity in governance ; and the financial consumer protection bill, which will better safeguard the interest of financial consumers, thereby promoting savings and investments. 2 / 4 bis central bankers'speeches reinforcing the country ’ s solid economic fundamentals with carefully crafted reforms is the best way to strengthen the economy ’ s prospects. speaking of prospects, we remain optimistic that when the dust has finally settled, the philippines ’ attractiveness as an investment destination will shine through. we will unceasingly pursue the build, build, build infrastructure program ( which presidential adviser vince dizon will elaborate on ). the bbb program is expected create a lot of jobs in the near term, generate economic activities in the countryside, and expand the productive capacity of the economy moving forward. besides these, we are equipping our economic sectors for the transition to the so - called “ new economy ” – an economy that is stronger, more technologically - savvy, and more inclusive. in the new economy, we shall harness the full growth potential of the economy. in the new economy, we shall also see a nation that is more technologically savvy. even prior to the pandemic, financial technology has already been at the forefront of bsp ’ s agenda. the bsp has put in place a “ test and learn ” environment or what we call the “ regulatory sandbox ” approach, which allows us and the fintech players to learn more about the operations as well as the risks that come with technology at its nascent phases