services cannot. while this is an exciting prospect, it cannot be achieved without guardrails. consumer and investor protection begins with firms themselves. for the crypto sector to succeed, compliance and a customer centric approach should not be seen as a cost 2 / 5 bis - central bankers'speeches of doing business, but rather, they have the potential to be a competitive advantage. the provision of financial services is about helping others make financial decisions ; it is also about the provision of choice for consumers and importantly, the provision of products that are suitable for consumers. selecting financial services or financial products often involves taking risks. the stronger the firms risk management, the better position they are in to understand, calculate and mitigate risks, therefore strengthening their business model, and their relationship with their customers. the importance of good culture and conduct risk management in delivering on new obligations under micar cannot be overstated. it is not merely a regulatory requirement ; it should be viewed as a fundamental component of maintaining trust, integrity and stability within the sector. effective organisational culture builds on shared purpose and standards such as professionalism, honesty, integrity and accountability to deliver fair outcomes that have the interests of consumers and investors at heart. the central bank expects to see such standards and values embedded in all the firms we regulate. the importance of tone from the top, and the critical role of directors, cannot be overstated. the directors have a role in setting the culture, living by it themselves and calling out and addressing poor behaviours when observed. this will ensure that when they are faced with a dilemma or a moment of pressure, their natural instinct is to do the right thing, not the questionable thing. the value of guardrails our mission requires us to ensure that the financial system operates in the best interests of consumers and the wider economy. consumer and investor protection risks are inherently high in some crypto and services and this is a concern to us. this is why we have warned consumers that crypto products can be highly risky, speculative and are not suited for most retail consumers. where we see higher inherent conduct and consumer protection risks in products, we will have higher expectations of firm's to adhere to high standards. so in short, we take a sceptical view on business models where profitability is driven from the heavy marketing, offering and distribution of unbacked crypto to retail customers for speculative purposes. additionally, i would also like to stress that governance and safeguarding of client assets are critical considerations

continues to post double - digit, reflecting sustained demand for loans from various production sectors of the economy. liquidity conditions, while growing at a 3 / 6 bis central bankers'speeches moderate pace, remain sufficient to support economic growth requirements, with the latest ratio at 64. 2 percent for q1 2019. the continued soundness and stability of the philippine banking system also lend strong support to economic growth. philippine banks remain robust, well - funded, and adequately - capitalized. as of end - march 2019, the philippine banking system assets expanded by 11. 0 percent year - onyear ( yoy ) to p17. 0 trillion which approximates the size of the domestic economy. the expansion in the banking system ’ s assets was primarily due to increased lending activities. the observed robust asset growth was supported by expansion in bank branch network to 11, 933 as of end - june 2019. deposit liabilities continue to be the primary funding source of the banking system. these deposits are mostly peso - denominated and sourced from resident individuals and private corporations. meanwhile, banks ’ annualized net profit grew by 8. 8 percent to p189. 0 billion for the period ended march 2019. annualized interest income primarily kept the bottomline robust, growing strongly by 27. 7 percent for the first quarter of the year. with respect to banks ’ capitalization level, the capital adequacy ratios ( cars ) of u / kbs on solo and consolidated bases improved to 15. 1 percent and 15. 8 percent, respectively. as you know, these ratios are well - above the minimum threshold set by the bsp and bis of 10 percent and 8 percent, respectively. the increase is due to the capital build - up being undertaken by the industry in anticipation of further expansion of the credit portfolio and investment activities. liquidity remains sufficient as banks maintain adequate high - quality liquid assets. this favorable confluence of strong growth and a manageable inflation environment allows us to be optimistic. nevertheless, there are still challenges that need to be considered. there is the risk of sluggish global growth. in its july 2019 world economic outlook ( weo ), the imf revised its global growth forecast for 2019 from 3. 3 percent last april to 3. 2 percent. trade tensions between the us and china continue to be at the forefront with both countries raising tariffs on different imported goods. at the same time, brexit - related issues continue to be another source of risk. the