organization has a collective responsibility to ensure that strategic objectives are achieved while controls and risk management systems remain effective. you intimate familiarity with clients provide you with a competitive edge. rural banks should be proud of their deep understanding of their customers ’ financial needs and underlying credit worthiness. this information can be used to design financial solutions to foster mutually beneficial relationships. that ’ s what bffs are for, right? you ’ ve got a friend in bsp as the industry faces increased challenges, it can be assured that the bsp has its back. years of prudence and discipline, something we worked on together, have created buffers and defenses that would stand it in good stead. to boost the resilience of rural banks, the bsp promotes a policy framework geared towards achieving a robust banking system that will foster broad - based inclusive growth. we continue to promote effective risk management, a stronger capital base, and improved corporate governance standards. these are all embodied in an enhanced bank regulatory framework that is responsive to local conditions while being consistent with international best practices. we are mindful that the future of banking entails a change in the way even rural banks interact with clients. thus, we support responsible and prudent digital financial innovations. in an increasingly virtual and digital environment, your partnership with financial technology firms, coupled with your close client relationships, present boundless opportunities for growth. to further promote common interest and cohesion within rural banks, we encourage pooling of resources among your members to gain access to shared and reliable infrastructures, such as common platforms for technology solutions for the benefit of your members. finally, the bsp is formulating policies and regulations to guide banks to take on a risk - based approach to cybersecurity management. the bsp has also stepped up a more proactive monitoring of the virtual environment while promoting the resilience of the entire financial ecosystem. bffs in credit : building viable ecosystems and financial infrastructure last week, i was in the 43rd philippine business conference and expo. i was asked about how the bsp encourages banks, including rural banks, to provide relevant financing programs, and to become reliable partners of micro, small, and medium enterprises. this question can very well be extended to include individuals, farmers, and fisher - folk. in the bsp, we believe that to uplift marginalized segments, the answer should not be framed purely from a financing standpoint. why? for one, these sectors are unable to reach their full potential due

nestor a espenilla, jr : of bffs and growth speech by mr nestor a espenilla, jr, governor of bangko sentral ng pilipinas ( bsp, the central bank of the philippines ), at the 60th charter anniversary symposium of the rural bankers association of the philippines, manila, 23 october 2017. * * * there is so much insight in your chosen theme : “ rural banks : my bff – my best financial friend ”. first, it captures a paradigm shift. it recognizes that for there to be successful delivery of banking services, cultivating personal relationships with clients is not just desirable... it is necessary. to be effective, we must be client - centric... customer centric, sensitive to their needs and even their limitations. second, the use of the term, “ bff ” – an acronym used by the younger generation for “ best friends forever, ” signifies that rbap is becoming more hip ( nakiki - uso ). this may have something to do with the fact that mr. giovanni d. gabriento is one of the youngest presidents ever to lead the association..... the term bff was first used by millennials when communicating via text and instant messaging. times are changing and we must adapt to remain relevant and to be successful. i am excited to share with you, the bsp ’ s initiatives with respect to financial technology and digitalization. finally, perhaps whether or not you are aware of it... the theme rural banks as “ best financial friend ” perfectly captures the essence of the industry ’ s close and unique relationship with the communities it serves. that rural banks can, and are poised to be the public ’ s best financial friend, speaks much about your role in furthering financial inclusion and growth! this is an exciting prospect and sets a positive tone for the morning. it is my pleasure and honor to greet everyone and express my sincerest congratulations on the 60th charter anniversary of the rural bankers association of the philippines... dear industry professionals, officers and members of rbap led by president giovanni gabriento, honored guests, ladies and gentlemen, magandang umaga sa inyo. small but terrible bff it is often that we find our bffs in school – be it in grade school up until college. we share experiences with them, go through storms and the struggles of growing... trust develops... so much so that even