is the “ range of one ’ s perception and experience ”. putting these two meanings together suggests to me that when you chose this topic for this year ’ s convention, you were actually asking your members to find ways of enlarging “ what the industry knows about what it can experience and what it is able to do ”. you were, in a sense, asking your members to find ways to enlarge these things to the point where the sky and earth seem to meet. i wish to tell you even now, that in this journey you have chosen, the industry can expect the bsp to provide an operating environment that would allow you to traverse this path, but in a way that makes you also mindful of the impact of your actions – not only on yourselves but also on the rest of the members of the financial eco - system you are in. how shall we broaden the horizon? your goal for 2013 is clear – to broaden the industry ’ s horizon. but how would you achieve this? in geometry and in nautical science, i am told practitioners have derived a mathematical formula for calculating the distance to the visible horizon. the exact equation bis central bankers ’ speeches will depend on whether adjustments for refraction, i. e., the distortions due to light, are done or not. but the common element in any of the equations is this – that the distance to the horizon is a function of the height from which you are taking your view. more specifically, the visible horizon will be further from you, the higher you are above the ground. this natural law is quite interesting in that it also applies to the laws of economics. if i were to apply this law to your chosen goal, i would paraphrase as follows. if the ctb wishes to broaden its horizon, the chamber needs to raise its vantage point. the stage is set using 2012 as our gauge, i believe you will agree with me that the country has certainly raised its vantage point. when we consider our markets, the environment is indeed more favourable now than it has been in the recent past. the economy expanded by 6. 6 percent in 2012 and this growth was matched by generally stable prices as inflation averaged 3. 2 percent last year. the high growth - low inflation scenario was further supported by our robust external position. the country ’ s balance of payments remains in surplus due to investment growth, business process outsourcing receipts and the steady rise in remittances. this led to

market. and if we are to raise our national economic vantage point and take advantage of the momentum coming into 2013, thrift banks need to consider lending more to this economic segment. i say this because msmes provide great employment opportunities. a healthier msme sector will help ensure our economic growth is broad - based and inclusive. thrift banks, however, must not just lend more in terms of nominal amounts. the challenge to the industry really is to ensure that such lending continuously creates further opportunities. in this way, msmes can be assured of viability, regardless of mandated credit programs. final thoughts friends, you want this convention to be a discussion on broadening your horizon, our horizon. in trying to look ahead, i took us through the more scenic route of our recent past. the numbers tell us an encouraging story of growth and consistency of economic and financial stability. however, the paradox of financial stability is that we may just be at our weakest when we believe we are at our strongest position. complacency often sets in when positive news is continuous and this is reinforced by encouraging market parameters. if we fall into this trap of complacency, we risk losing our focus. for the thrift banking industry, the growth trajectory that many are anticipating suggests even better times ahead. it is therefore in our collective interest, if we wish to truly broaden our horizon, to agree on a common vision where thrift banks have a definitive role to play. bis central bankers ’ speeches in my remarks, i have suggested specific action points you may consider in order to accomplish just that, and over time broaden your horizon. i challenge the industry to 1 ) further improve credit underwriting standards for real estate and consumer loans and raise your vantage point by looking at your processes with the lens of financial stability, 2 ) interact with your clients and raise your vantage point by enhancing your practices with the heart of consumer protection and financial education, and 3 ) increase lending to msmes and raise your vantage point by lending with the mind to create greater value. but much more can be done. as the old board takes its place in ctb lore, your new board is now at the helm to guide the industry forward. it is never an easy task to move forward but rest assured that the bangko sentral ng pilipinas will be with you as we take that journey together into broader horizons. thank you very much and good day to all of you. bis central bankers ’ speeches