of euro area fdi abroad is mostly held with mature economies : nearly 21 % in the united states, 24 % in the united kingdom, 9 % in switzerland, and between 2. 5 % and 3 % in sweden, canada and japan. likewise, on the liabilities side, the united kingdom and the united states account for a larger share than on the assets side ( nearly 40 % and 23. 5 %, respectively ). i should also stress that the amount of euro area fdi in emerging market economies rose quickly. between 1999 and 2005, outward fdi from the euro area to the so - called bric group – which includes brazil, russia, india and china – increased markedly. over this period, the stock of outward fdi in the bric group rose from €63 billion to €133 billion ( or by 111 % ). in comparison, the stock of euro area fdi in the united states increased by 55 %, from €360 billion to €558 billion, during the same period. the euro area itself has also become more attractive as a destination for fdi from the bric countries : between 1999 and 2005, fdi stocks from the bric group in the euro area tripled, from €4 billion to €12 billion. this is still low in comparative terms but is not insignificant. in terms of comparison, the figures for us fdi stocks in the euro area rose from €322 billion to €560 billion over the same period. brazilian and russian firms account for the bulk of the bric countries ’ fdi surge in the euro area, but chinese and indian fdi has picked up in recent years. on the whole, this evidence suggests that there is no “ fortress europe ” or “ fortress euro area ” 3. the implications of globalisation for central banks my third reflection is about the implications of globalisation for central banks in their two principal functions, i. e. setting monetary policy and helping to secure financial stability. globalisation and monetary policy. the issue of the impact that we have observed for some months of the historic episode of accelerated globalisation on inflation is both important and much debated. economic theory has numerous channels through which globalisation can influence the level of prices, but these influences are not one - directional. i have already mentioned the basic phenomenon of the increase in the pool of labour available to the world economy with the widespread opening - up of emerging economies and the former centrally planned economies. the phenomenon ex

the credit and operational risk exposures of banks that would, in turn, translate into profitability and solvency concerns. we also recognize that the bsp has a role to play in the process. in line with this, we have rolled out a two - pronged approach in promoting environmental, social and governance ( esg ) principles. first, through capacity building and awareness campaign, and second by mainstreaming esg principles through the issuance of enabling regulations. we deem that this approach will increase the bsp and the banks ’ understanding of the risks posed by environment degradation and climate change on the financial sector, enhance capacity to manage these risks, and increase banks ’ awareness on the investment opportunities for green or sustainable projects before issuing regulatory expectations on sustainable finance. meanwhile, operationally, the bsp is already undertaking pockets of activities related to green practices. just recently, the bsp participated in the open - ended green bond fund launched by the bank for international settlements as part of sustainable investing in reserve management. the bsp also implemented the mb paperlite facility that resulted in the significant reduction of paper usage during mb meetings, and installed energy - efficient mechanisms such as solar panels and inverter technology in air - conditioning systems. lastly, the bsp will be issuing esgrelated regulations in phases. all of these are part of our commitment to adopt a culture that embodies sustainability. earlier i mentioned the two - pronged approach for sustainable finance. as we build institutional capacity, we argue that sustainable finance is ultimately a public good. when done right, sustainable finance can translate into profitable investments, while at the same time attain environmental and social objectives. 2 / 4 bis central bankers'speeches we also subscribe to the idea that financial regulation can be a useful tool to contribute to the achievement of national and international environmental and social objectives. in this regard, the bsp has been actively involved in global and local conversations on sustainability though our membership in the sustainable banking network, alliance for financial inclusion and asean. we also participated on a study on banks ’ perceptions on sustainable finance as well as engaged in capacity building initiatives for both internal and external stakeholders in partnership with both local and international development partners. on the regulatory pathway, the bsp believes that the optimal approach remains to be one that is “ enabling ” – one that provides ample flexibility, sensitive to risk - appetite and business models, and proportionate to the banks ’ size, structure and complexity of their operations. this approach aims to shift