balance of payments for the year, the peso should be supported, particularly in the last quarter of this year when remittances are traditionally strong. third, reforms in the financial sector will continue to be directed toward maintaining a strong banking system and a robust domestic capital market. specifically, we will focus on : further enhancing the regulatory framework through the implementation of the basel ii roadmap ; improving corporate governance by promoting compliance with international accounting and financial reporting standards ; accelerating the implementation of risk - based supervision technology ; and continuing support for the development of a deep and efficient capital market, including support for necessary legislative reforms. moving on, another priority for the bsp is our continuing efforts to broaden access to credit of micro, small and medium enterprises or what we call msmes. bsp ’ s recent reform initiatives toward this end include liberalized branching ; expansion of foreign currency deposit unit ( fcdu ) and trust licenses to include qualified rural banks ; the re - opening of quasi - banking license ; and the introduction of the breakthrough housing microfinance product. we will also continue to work on a sound market infrastructure that will promote secure and timely completion of transactions, thereby minimizing systemic risk and enhancing the integrity of financial transactions. this is being implemented through the promotion of progressive policies on e - commerce and payments system innovation. summing up, the critical task ahead of us is to preserve the momentum for economic reforms. this way, we can be assured of the economy ’ s sustained growth in the long run. as in the past, we will continue to rely on baiphil ’ s steadfast support in terms of providing training assistance to bank professionals to ensure that they are better skilled and equipped to handle the demands of a sophisticated and competitive financial arena. ladies and gentlemen, equal measures of challenges and opportunities abound in the banking sector. i am confident that with your newly - elected officers and directors, baiphil is in a strong position to take on the challenges upfront and turn these into opportunities that will benefit your respective banks and the economy as a whole. together, we can pursue a higher growth path for the economy, even in the face of formidable challenges. again, my congratulations to baiphil and its new set of officers led by its president lydia king mabuhay ang baiphil! mabuhay ang ating mahal na bansang pilipinas! maraming salamat sa inyong lahat.

amando m tetangco, jr : turning challenges into opportunities – the key to sustainable growth speech by mr amando m tetangco, jr, governor of the central bank of the philippines ( bangko sentral ng pilipinas ), at the baiphil ’ s induction of officers, directors and committee chairpersons and the general membership meeting, makati, 15 july 2008. * * * distinguished officers and members of baiphil ( led by outgoing president dolly yuvienco and incoming president lydia king ), fellow bankers, co - workers in the bsp, special guests, good afternoon! i am pleased to join baiphil today on the induction of its new set of officers. i do welcome the opportunity to meet baiphil ’ s officers and members, as you count among the partners of the bangko sentral ng pilipinas in our continuing pursuit of reforms for a strong and vibrant banking system. in addition, baiphil has emerged as one of the bangko sentral ’ s consistent partners in corporate social responsibility projects that directly benefit our marginalized sector. among others, i remember that baiphil organized other financial industry associations in providing financial support, as well as sweat equity, for the bsp - st. paul gk village in paranaque city. you will be happy to know therefore that over the weekend, we turned over 16 gk units to new homeowners in our paranaque gk village. for this, ladies and gentlemen of the baiphil, you all deserve a long round of applause! salamat sa inyong tulong. to the newly inducted officers, directors and committee chairpersons, i offer my congratulations! we at the bangko sentral ng pilipinas look forward to working with you as our banking sector deals with domestic and global challenges. in my previous meetings with members of the financial community early this year, i discussed the outlook for the economy and the banking sector in 2008. i remember having said that the philippine economy is headed for a more challenging environment – one that is fraught with headwinds. indeed, our economy has to contend with “ rough patches ” emanating primarily from the turbulence in global financial markets, the slowdown in the us and other economies, and the unprecedented rise in global food and energy prices. while we continue to see challenges and risks arising from adverse global developments, we remain optimistic and confident that we can ride out this turbulence and sustain the economic