managed peg to the regionally dominant currency. he observed, for example, the very strong regional interdependencies in east asia and the momentum these create for a regional monetary arrangement comparable to those which europe sought after the bretton woods system came to an end. the distinctions between large and small economies, and floating and managed currencies, are particularly revealing at the present time, when we are seeing a large anomaly. we are currently facing an unprecedented situation in which a once - small economy that pegged its currency to that of a large economy has since grown to become the world ’ s second - largest national economy. the result is a giant economy running a fledgling currency internationally, outsourcing its monetary policy and its international requirements for money ( as a medium of exchange, unit of account and store of value ) to the globally dominant currency. this has been a major source of imbalances in recent years. the way in which it has been addressed has been unsatisfactory and the effects on the prospects for the global economy are likely to become graver over time. bis central bankers ’ speeches the major economies, while recognising the domestic impact of the policies of others, have yet to appropriately factor mutual interdependence into their utility functions and policy deliberations. in europe, we had the luxury of reflecting on european interdependencies in decades of calmer conditions when making successive attempts to produce a stable european monetary order, leading up to european monetary union. and still, we did not learn the lessons well enough and are now having to do so the hard way. there is no alternative but for a stricter supranational disciplinary element in europe and, by corollary, at global level. as tommaso said, it is nonsensical for countries to believe that they can reap the benefits of economic and financial integration without their policies acknowledging the two - way street. the second issue is the need for an anchor to ensure the stability of a reformed international monetary system. more specifically, the interplay of demand for, and supply of, the reserve currency should be limited to what supports global stability. just as triffin saw an unresolvable tension for global stability arising from the subordination of the management of reserve - issuing currencies to domestic policy interests, tommaso considered that this tension was keeping the disorder alive. in his view, what was needed was a quantum of suprana

usd2. 6 billion in june 2021 from a 2. 4 billion in may 2021. meanwhile, unemployment remained unchanged, at 7. 7 percent in june 2021. while we have taken a step back because of the recent implementation of ecq in response to the more transmissible delta variant, i am confident that we will be able to get back on track with the adoption of a whole - of - nation approach in addressing the challenges brought about by this pandemic. what is key, however, is our vaccination rollout. let ’ s now look at the philippine banking system. banks ’ total resources continued to expand, albeit at a much slower pace relative to pre - pandemic period. year - on - year growth of banking system assets was posted at 6. 4 percent as of end - june 2021. 1 / 6 bis central bankers'speeches the expansion was mainly funded through deposit generation. deposits grew by 7. 6 percent year - on - year to p15. 3 trillion as of end - june 2021. these deposits were mostly peso - denominated and sourced from domestic households and enterprises. these developments are testament to the public ’ s continued trust and confidence in the banking system. gross total loan portfolio ( tlp ) declined year - on - year by 0. 4 percent to p10. 8 trillion as of endjune 2021. this is both a supply and demand issue as banks continue to be risk averse while businesses defer their expansion plans given the uncertainty in the economic environment. nonetheless, banks have continued to restructure and grant new loans to the micro, small and medium enterprises or msmes. as of the reserve week ending 29 july 2021, loans to msmes that were utilized as alternative compliance with the bsp ’ s reserve requirements amounted to p188. 7 billion, up from the p8. 7 billion recorded as of end - april 2020. overall, loan quality remains manageable. gross non - performing loan ( npl ) ratio rose to 4. 5 percent as of end - june 2021, but this was accompanied by a high npl coverage ratio of 82. 4 percent as of the same period. the recent passage of the financial institutions strategic transfer ( fist ) act provides banks with a stand - by facility to offload their non - performing assets in case these post a sharp increase. banks remained well - capitalized. as of end - march 2021, the capital adequacy ratios of the universal and