) covid action response ( care ) bonds, which is intended to finance and refinance micro, small, and medium enterprises ( msmes ). this initiative complements the measures rolled out by the bsp to support msmes and contribute to accelerating economic recovery. second, banks can drive digital banking and financial inclusion. during the lockdown, households and businesses resorted to online shopping platforms, which tremendously increased the usage of and applications for digital accounts. recent data shows that an estimated 4. 115 million digital accounts were opened among banks and e - money issuers at the height of the lockdown. this sends a strong signal to the banking sector to develop products and strategies that cater to the increasing appetite of financial consumers towards digital payment solutions. one development in this field is that many filipinos turned to online selling as a way of making up for loss of income. several existing businesses, whether large or small, shifted to online platforms to keep the business afloat during the lockdown. borrowers ’ ability to sustain cashflow in the face off restrained economic activity can ease concerns on banks ’ potential credit losses. third, is the opportunity for banks to develop and strengthen their environmental and social risk management ( esrm ) system by applying the lessons learned from this global health crisis. the esrm provides a broader approach to banks in identifying, assessing, and managing its risk exposures. e & s risks arising from the health crisis offers a glimpse of how severe and longlasting other potentially systemic risks such as climate change may drag the banks ’ performance and long - term growth. the pandemic has features akin to climate and other environment - related risks. it requires science - based data and have underlying physical and transition risks. 2 / 3 bis central bankers'speeches physical risk refers to the direct threat of the pandemic to human life and society. this may include increased mortality and susceptibility to other diseases. transition risks, on the other hand, arise from the inevitable shift of the economy towards minimal or contactless systems and processes to minimize the transmission of the disease. this may result in losses in sectors that rely heavily on face - to - face transactions or service delivery. developing and implementing e & s risk management systems will allow banks to better understand and manage these risks and will enable them effectively respond to future similar threats. this highlights the importance and timeliness of the issuance of the sustainable finance framework. as we recognize the challenges of the banking sector amid this crisis

benjamin e diokno : opportunities for banks in pursuing a green, sustainable economy in the current pandemic speech by mr benjamin e diokno, governor of bangko sentral ng pilipinas ( bsp, the central bank of the philippines ), at the w w f and bap ceo breakfast forum on bsp sustainable finance framework, manila, 21 july 2020. * * * my fellow speakers, mr. edgardo e. tongson, chief of party of the w w f philippines ; mr. cezar p. consing, president of the bankers association of the philippines ; ms. yuki yasui, asia pacific region coordination manager of unep - fi, and to all the participants, friends and colleagues in the industry, good morning! on behalf of bsp, i would like to thank w w f and bap for this opportunity to our pursuit of a green, inclusive, and sustainable agenda and how it can lead to opportunities amid the pandemic. we are indeed facing a devastating period. this health crisis and its impact on the economy are unlike any we have encountered before. as a result of this health crisis, the imf projected that the global economy would plunge by 4. 9 percent in 2020. based on philippine authorities, the economy will contract by 2. 0 to 3. 4 percent this 2020. ed sustained economic growth, averaging at above 6 percent for the past eight years. we entered into this crisis from a position of strength. inflation was low and stable. our external payments position was robust, gross international reserves were at a record - high, debt - to - gdp was low, public finances was healthy, and macroeconomic performance was positive. philippine banks continue to be well - capitalized, stable, and well - functioning across all metrics. but no one could have imagined the impact of covid - 19. gdp growth declined slightly by 0. 2 percent in the first quarter of 2020. it is the first negative real gdp growth since 1998 ’ s el nino and the asian financial crisis. the government imposed a lockdown in an effort to curb the transmission of the disease. this, however, comes with a price. the restrictions in the movement of people and the stoppage of big part of business operations dampened domestic demand. its impact on tourism, manufacturing, livelihood, and employment was severe as the lockdown extended up to the second quarter of 2020. to address the dual impact of the pandemic in the health