have imposed fit and proper criteria on directors, while clearly articulating their duties and responsibilities, including the expectation for each board member to exercise objective judgment at all times. banks also have to institutionalize a compliance system to reinforce checks and balances in the institution. further, we have highlighted the importance of having an effective risk management system. all these are accompanied by regular monitoring and strengthened enforcement actions. 4. fourth, we have fully supported the further liberalization of the entry of foreign banks into the philippine market. 5. fifth, we are committed to the timely and appropriate adoption of international banking reforms to our domestic economic conditions. we subscribe to the general principles and objectives of the international reform agenda, but we are also pragmatic in our approach to their adoption. while we are in agreement with the goals, we believe that implementation must follow the principle of proportionality to country - specific circumstances. one such reform concerns financial market infrastructures or fmis, the piping that allows trades to be processed and critical risk information to be properly monitored. for a market such as the philippines, this is critical but it is also a clear challenge. certainly, we need fmi pipelines to execute market transactions, provide transparency, ensure price discovery, introduce risk mitigation, and generate efficiencies. nevertheless, many of the fmis identified by global reforms may not be in synch with the scale of market activity and associated risk in most asian jurisdictions. central counterparties, trade repositories and exchanges for otc derivatives, among others, require a fair amount of investment and a lot of preparation. this is work that does not only involve the bsp, but other financial market regulators as well. this is the reason why the financial market infrastructure as well as the other international reforms are being discussed at the financial sector forum, which is composed of the bsp, the insurance commission, the securities and exchange commission, and the philippine deposit insurance corporation. quality improvement among our banks ladies and gentlemen, we have followed these policy tracks to strengthen our banking system. within this framework, our banks could generally have the leeway to take on more risk exposures, if they so choose. in addition, the regulatory framework is such that it would allow banks to be able to withstand added, if not healthy, competition. there are evolving competitive forces expected to come from banks outside the region which have an interest to service activities in the country as well as future qualified asean banks ( qab

, responsible, and customer - centric standards of business conduct. the passage of the fcp act will enable financial regulators to sanction business practices and entities that pose grave and irreparable injury to financial consumers. it will deter frauds and scams, and ensure that every juan and maria are provided with positive customer experiences. fcp act features overview 7. now, let me talk about the salient features of the fcp act. the act covers the full range of financial products and services offered by the banking, insurance, payments and fintech industries. even investment advisory services are covered. aligned with international standards, the act strengthens the oversight and enforcement powers of financial regulators to address current weaknesses of existing laws, rules, regulations. the act grants regulators with authority to determine the reasonableness of fees and charges ; suspend erring employees ; revoke licenses of erring financial institutions ; and impose sanctions to ensure compliance with the intent of its provisions. 8. most importantly, the act provides financial consumers with new, immediate, and efficient avenues for redress by granting financial regulators with adjudicatory authority to conduct hearings on consumer complaints. this proposed measure provides alternate, less cumbersome, legal recourse for financial consumers. consumer complaints can be escalated and resolved at the level of the financial regulators, ensuring quick resolutions, hence de - clogging court dockets. existing courts may then focus on more pressing matters. 9. the passage of the fcp act is not only a matter of necessity, it is an issue of urgency. as mentioned earlier, as financial products and services continue to rise, so do risks. and we, policymakers, cannot stand idly by while the juans and marias continue to suffer from the limitations of our existing laws. 2 / 3 bis central bankers'speeches 10. without doubt, if properly and swiftly implemented, the fcp act will reinforce the trust and confidence of the public in the financial system, and in the government ’ s ability to uphold consumer welfare. 11. we look forward to this committee ’ s — and the senate ’ s — full and continued support to the enactment of the financial consumer protection act as a priority measure. thank you very much. 3 / 3 bis central bankers'speeches