that the source of our collective confidence in our ability to face up to the challenges ahead. first, we have financial strength. we hold international reserves of more than 36 billion dollars, a historic high. our capital base is now over p150 billion versus the original p10 billion we started out with when the bangko sentral was created 15 years ago. our balance sheet is strong with most of our foreign debts paid up. we enjoy a successful track record of solid contributions to macroeconomic stability as evidenced by a lengthening record of relative monetary stability, balance of payments surplus, and meaningful economic growth. we have nurtured the banking system back to health from the depths of the fallout from the asian financial crisis in the late 1990 ’ s without the massive government bailouts that characterized other countries in our region. we did it by improving the quality of supervision and instituting far - reaching structural reforms in cooperation with the legislative, represented here tonight by sen. angara and cong. lopez, and the executive branches of government. today, bank profits are higher, capitalization deeper, and npa and npl ratios down to nearly pre - 1997 crisis levels. banks are consolidating into stronger institutions even as branch networks and other delivery channels expand well - beyond urban centers and deep into the countryside and islands. we have also witnessed the unveiling of new financial products to meet the growing need and sophistication of the public – from the wide array of credit cards, cash cards, to structured investment products, to unit investment trust funds, to tailor fitted loan products. products that cater to the top end of the market and all the way down to microfinance customers. we are especially proud of our advocacy in sustainable microfinance that has energized our smaller banks, particularly the rural banks, to bring more people within the reach of a banking system not just for a working capital loan, but also for deposits and remittances. and among central banks, we lead in microfinance advocacy and regulation. this has led to creative product innovation as well as international recognition. we have also made much progress in broadening the array of alternatives available to overseas filipinos in sending their remittances back home to their beneficiaries. greater competition has led to lower remittance cost, broader access, quicker delivery, and generally better services. it has also facilitated the inflow of remittance into the economy that now amount to approximately $ 16

billion per year and grows at double - digit growth rates. our desire to develop a more inclusive financial system that caters to all sectors of society has also led us to yet another major advocacy – that of promoting financial learning down to the grass roots level. if you recall, our tulong barya para sa eskuwela program was successful because we had the banking sector with us as partners led by the chamber of thrift banks, rural bankers association of the philippines, the bankers association of the philippines, as well as the philippine retailers association particularly sm and robinsons, absp - cbn and gma7 among others. many of you are here and we take this opportunity to thank you again. i also wish to invite you to support this program which is being launched in partnership with the department of education. we also thank our partner - banks who share our goal of teaching our 12 million public elementary students regular lessons on saving and money management. our screen is now flashing the banks who are now on board with us for the integration of financial lessons in the elementary curriculum. we are keeping the doors open for other banks and institutions to support this breakthrough project. for your information, the bangko sentral has a comprehensive financial education program that covers schoolchildren to college students to adults, including overseas workers and their dependents. we are also setting up economic & financial literacy centers in bangko sentral ’ s regional offices and branches across the country because we believe that education is a powerful empowering means for developing responsible and productive citizens. in this connection, we are also pleased to announce that the bangko sentral is expanding its scholarship program to include deserving students in urban centers and in the provinces for courses associated with economics and banking. ladies and gentlemen. the last 15 years has provided us the opportunity for introspection and to re - invent ourselves as well as our institution for the challenges that lie ahead. you who are here tonight have been with us in our journey. we thank you for this. it is in this spirit that the monetary board approved the scrapping of certain fees of the bangko sentral ’ s real time gross settlement system – the philpass. you may get more details about this from deputy governor andy suratos who is here with us. i also take this opportunity to remind you that we at the bangko sentral stand ready to continue our dialogue with you so that we can identify more areas of concern, formulate solutions, and thereby move forward together