shall have the three new “ authorities ” and a crosssectoral committee with specific tasks in fostering convergence of supervisory rules and practices in europe, whereas the national supervisors are to remain responsible for ongoing supervision. experience of the crisis indicates that strengthening supervisory coordination is crucial in dealing with the current problems and helping to restore confidence. the objectives of the new framework, according to the ecofin / european council, are to upgrade the quality and consistency of national supervisors ; to strengthen supervision of cross - border groups, in particular, by setting up supervisory colleges for all major eu financial groups and by moving towards a single rule book. the ecofin and the european council also stipulate that the activities or decisions of the new authorities should not impinge on the fiscal responsibilities of the member states and that any binding decision by the new authorities or the commission must be subject to community courts. these key messages from the ecofin conclusions match perfectly with what might be considered to be the “ success factors ” of the new framework. due account should be taken of these when discussing and deciding the details : continuation of a cooperative working style within what should be an operational network rather than a centralised supervisory system. the envisaged binding powers of the new authorities in relation to the national supervisors should be interpreted as a means of speeding up the process of convergence and of strengthening the supervisory system, not as a sign of a hierarchy. it should not be forgotten that the decision - making bodies of the new authorities comprise the national supervisors. in this context, i do not agree with the proposed possibility of decisions taken by the new authorities being communicated directly to financial institutions. i do not want to get into a discussion on fundamental legal issues. however, even from a political perspective or with regard to a possible response on the part of the general public, it is important that one should refrain from direct intervention vis - a - vis financial institutions. communication with the institutions in such matters is solely the responsibility of the competent supervisors. there was a political consensus to upgrade the three committees to authorities with specific powers, including some binding powers over the national supervisors. however, the current commission proposal goes further, giving the three authorities direct powers to take decisions that affect the industry. apart from the legal issues this raises, this approach risks establishing a parallel system of national responsibility – which, incidentally, ecofin is in favour of maintaining –, and decisions from a supra - national authority. taking due account of the fundamental principles of subsidia

reform agenda to strengthen their ranks in terms of capitalization, risk management, and corporate governance. this successful collaborative strategy has given the banking system sustained growth momentum. indeed, we have made great strides in various aspects of our operations. ours is a narrative of proactive management and reform to advance our vision for the country. moving forward with all that we have achieved so far, are we then set for the future? well, no environment is ever static. as the central monetary authority, our role is always evolving. this is the de facto norm in central banking amidst the transformation of the global environment, our country ’ s objectives and its needs. this task is not straightforward, as it has to contend with unexpected financial shocks, political upheavals, and natural calamities. nevertheless, amidst the tides of change, we will continue to remain focused on ensuring price and financial stability in the country. we will find better ways to adapt the flexible inflation targeting framework to the lessons of the global financial crisis — that price stability, on its own, cannot guarantee overall financial stability. thus, sustained monitoring and active surveillance of monetary linkages will consider more granular relationships within the financial market. this will allow us the added perspective of identifying pressures that may be quietly building - up. new tools may be considered based on our very own experience to ensure the delivery of the bsp ’ s mandate. this requires us to organize ourselves, strengthen our ranks, refine our tools and innovate in our 2 / 3 bis central bankers'speeches approach to ensure that we secure the interests of our stakeholders and keep pace with the shifts in the environment. we will continue to be strategic in identifying a vision and setting down a framework to achieve it. in this connection, an s & p report on the banking system, dated may 14, 2017 makes us proud of what the men and women of the bsp - past and present – have achieved. the report said : “ the central bank has a record of supporting sustainable economic growth and responding appropriately to changing economic circumstances. its ability to maintain macroeconomic and price stability through an economic cycle has been tested, including a period of exogenous shocks. " for this i thank and congratulate everyone under team bsp! the journey continues ladies and gentlemen, my term as governor of the bangko sentral ng pilipinas ends in july 2 or 38 days from today. i take this opportunity therefore to thank all institutions, individuals, family and friends who