the issue has also been recognised at international level. the basel committee has therefore announced the release of a set of measures for consultation. these measures mainly provide for the revision of the standardised approaches for rwa calculation, the introduction of an rwa floor based on the standardised approaches, as well as greater transparency. the floor is aimed at ensuring that the requirements for banks using the model - based approach remain sufficiently prudent. in this regard, let us also recall that finma – together with the big banks and with the support of the snb – has conducted a comparison of rwa calculated with the model - based approach and the standardised approach. the snb suggests that banks consider the possibility of publishing the results of this analysis in appropriate form. in any case, the snb remains convinced that banks which use the model - based approach for calculating their rwa must continue to improve their transparency with regard to their risks. considerable bis central bankers ’ speeches progress has been made already, especially in terms of disclosing changes in rwa broken down by cause. publishing a parallel calculation of rwa based on the standardised approach would greatly contribute to building trust and market discipline. enhanced transparency is likely to be a key component of the measures that the basel committee will put in consultation. domestically focused commercial banks i would now like to turn to the situation of the domestically focused banks. risks facing these banks are still primarily connected with the mortgage and real estate markets. these risks have largely remained unchanged at a high level over the past six months. in the last half year, the momentum in the mortgage market slowed, with annual growth in mortgage lending slightly less high than in the previous quarters. the mortgage volume continued to rise more steeply than gdp, but the difference between the two growth rates has become smaller. furthermore, real estate prices continued to rise but, as in 2013, momentum remained below the levels observed until 2012. developments still varied widely from one region to the other. whereas real estate prices in some regions hardly increased or even decreased, other regions continued to register significant price rises. however, it is still too early for an all - clear. first, the imbalances that have built up since the beginning of the low - interest - rate phase remain at a high level. second, mortgage interest rates have again dropped to historically low levels in the past few months. and third, there are no broad - based indications of a change in the banks ’ risk appetite. mortgage lending growth

amando m tetangco, jr : banking sector developments in the philippines speech by mr amando m tetangco, jr, governor of the central bank of the philippines ( bangko sentral ng pilipinas ), at the ilf moa signing ceremony, manila, 25 march 2008. * * * members of the monetary board, undersecretary roberto tan, bap president ramon sy, mr. paul favila, fellow bankers, special guests, good morning. i am glad we now have this memorandum of agreement for the enhanced intraday liquidity facility. this moa will help the philippine banking sector adapt and respond better and faster to increasingly dynamic and challenging developments in the financial markets. congratulations are therefore in order to all those involved in the process that has led to this moa signing today. let us give everyone a well - deserved round of applause. indeed, operational adjustments in the ilf provide participants greater flexibility in the use of their securities. for instance, instead of earmarking the securities for ilf use for the whole week, participants can now make daily changes in their securities pool. in addition, availments will be made only when the need arises. furthermore, availment costs have been reduced to encourage more participation to the ilf. ladies and gentlemen. these are challenging times and now, more than ever, we need to close ranks to address the issues that concern the banking sector in a coordinated and comprehensive manner. on our side at the bangko sentral, we assure you that our lines of communication are kept open at all times for discussions and consultations. i expect the same from your end, particularly when it concerns programs that will benefit the financial system in particular and our economy in general. i will be the first to say that we have done a lot to strengthen our banking sector. this has been validated and repeatedly acknowledged here and overseas. however, we should continue our reform agenda to keep in step with global developments. let us choose innovation, over stagnation. united, we can make further improvements in our banking sector as well as our payment and settlements system to make it stronger, more efficient, and consistently aligned with worldclass standards. mabuhay ang philippine banking sector! maraming salamat sa inyong lahat.