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

the first time that total microfinance loan portfolio is exceeded by the savings component. this suggests that while microfinance clients take out loans, saving is sustained. for microentrepreneurs, savings help them survive through emergencies or take advantage of a business opportunity. as a further support to microentrepreneurs, the bangko sentral issued last january circular 782 which expanded the scope of qualified microinsurance clients and increased their risk protection. the rural bankers association of the philippines ( rbap ) reports that there are over 500, 000 clients of rural banks that now enjoy microinsurance coverage. this supports the report from the insurance commission that the number of filipinos with microinsurance coverage has doubled in just two years. ladies and gentlemen. earlier we heard the testimonial of floraiwin cainglet, the 2012 cma national winner. flor and her husband rommel started with only two pigs and now have a thriving and innovative hog raising business worth p2. 5 million. in addition, they support a daycare center and feeding programs in their community. these microentrepreneurs are at the forefront of improving lives in their community. again, let us give them a big hand! bis central bankers ’ speeches the success stories of more than 80exceptional microentrepreneurs that the cma has recognized in the past decade tell us that we are successful in providing a nurturing environment for microenterprises. these stories lend a face to the data and serve as validation that our efforts and initiatives in microfinance are effective and sustainable. fellow advocates of microfinance, let us continue to work together therefore to strengthen and sustain partnerships for microfinance. in october this year, the microcredit summit campaign will hold its 16th summit in manila in partnership with the mcpi and with support from the bsp. the theme for this year ’ s conference revolves around partnerships against poverty. the conference will discuss some of the most advanced and successful examples of public - private partnerships in microfinance. i hope you will join the conference. the cma itself is one tangible example of a successful and meaningful partnership against poverty with citi, the citi foundation, the mcpi and the bangko sentral working together toward a shared goal. together, we celebrate the success of our microentrepreneurs. they strengthen our belief that many more filipinos can have a better life through microfinance