– not just to finance - but also to basic human necessities : including safe and clean water. here, public - private partnerships are a feasible solution to the low level of investments in the water supply sector. asean integration is another area of opportunity. with the passage of republic act no. 10641, full entry of foreign banks into the philippines is now allowed. qualified asean banks can enter the local market. we recently signed an agreement with malaysia under the asean banking integration framework. the bsp monetary board has also approved the application of six foreign banks to set up philippine branches. this liberalized regime should further enhance the quality of competition among our banks. this environment will result in promising opportunities to encourage innovations that will ultimately benefit the economy and the general public. another source of opportunity is the country ’ s large, young and highly literate population. in the philippines, the median age of the population is 247. in japan, it is 47. in the u. s., it is 38. we are entering a “ demographic window ” historically proven to be the most prosperous years of a country, where millennials comprise a significant consumer segment. as the largest portion of the workforce, they are identified to play a key role in driving growth and economic development. it is an exciting time and the future is bright with possibility! this young generation will also make adoption of cutting - edge technology more likely. this can lead to opportunities for greater innovation including for the water supply chain industry in terms of safeguarding water sanitation, waste water management and protecting the environment. 594 out of a total number of municipalities of 1, 634, as of end 2015 cia world factbook bis central bankers ’ speeches for the banking industry and suppliers of goods and services, this can be significant. modern digital financial services and changes in how we make payments and money transfers will be provided. related to this, the bsp is developing a national retail payment system ( nrps ). through the nrps, we aim to establish a safe, efficient and reliable means to transfer value built upon an effective and interoperable interface of various electronic payment channels. this is an integral reform given that of 2. 5 billion payment transactions per month, only 1 % is made through electronic means. the nrps will expand the reach of financial services and will promote efficiency, transparency and development of business models improving economic competitiveness. the backdrop of the economy i hope i have encouraged you to consider some opportunities to help us achieve our

shared goal of economic development. let me round off my remarks with views on our operating macroeconomic environment moving forward. this may help guide you to take advantage of these prospects. the philippines entered 2016 in a position of relative strength. in 2015, average full year gdp growth was 5. 8 %. this is among the highest in asia. the 4th quarter 2015 growth of 6. 3 % brought the number of consecutive quarters of positive economic growth to an astounding 68 quarters. the philippine banking system continued to expand. over the past six years, total assets roughly doubled owing to a steady growth of deposit liabilities. bank loans also doubled and nonperforming loans continued on a downward trend. philippine banks are well - capitalized, with capital adequacy ratios above national and international standards. our external liquidity position is strong. our end - february gir of us $ 81. 3b is sufficient to cover 10. 4 months of imports and payments of goods and services. that said, in 2016, there are still challenges to our positive position. these will come mostly from the external side. there is divergence in the monetary policies in the advanced economies. the us fed is poised to raise rates ( albeit now at a slower pace in 2016 than the fed first indicated in december 2015 ), while ecb and boj are in negative interest rate territory. this may raise near term financial market volatility. but we are hopeful that the policies adopted would result in a sustainable growth trajectory for these countries and would create positive ripples to our own trade and growth prospects. another cause of concern is the middle east, where oil prices fell sharply. while oil importers like the philippines benefit from the price drop, low oil prices are double - edged. oil exporters may cut back on capital expenditures. this may have an adverse effect on the philippines in general, and on overseas filipinos, should oil producers cut costs and trim staff. there is need to manage the near - term impact on financial market volatilities and the government should consider more long - term solutions to possible disruptions. domestic considerations include intensification of the el nino phenomenon ( a very clear concern we share ) and the persistence of infrastructure gaps. results of the upcoming national and local elections may also influence global perception of philippine growth prospects. these risks, notwithstanding, we expect to see the country continue on the path of low inflation, steady growth. our confidence stems from the buffers we built :