oversight of the board of directors and the robustness of risk management systems of financial institutions, enabling them to quickly resume business operations and deliver financial services even amid the pandemic. the corporate and risk governance reforms implemented by the bangko sentral to embed a culture of excellence and good governance among supervised financial institutions helped the philippine banking system withstand the pandemic. in closing, allow me to share how the bangko sentral is working toward a safe, sound, and resilient financial system, captured in the acronym ring : r stands for risk management guidelines which are continuously enhanced to be responsive to changing environment i is integrity in the financial system and investor confidence, which we espouse. n or new technologies that must be adapted to provide innovative financial products and services, and lastly g or governance standards, which must be continuously strengthened, reinforcing sound culture and conduct of supervised financial institutions. all that said, i hope map can also use these same principles in promoting management excellence in your respective organizations. 3 / 3 bis central bankers'speeches

year. the philippine banking system has remained sound amid the covid - 19 pandemic. the banking system ’ s total resources grew year - on - year by 6. 6 percent to p20. 1 trillion as of end - october 2021. asset expanded by 8. 6 percent to p15. 6 trillion, funded mainly by deposits, reflecting continued trust and confidence of the public in the banking system. bank lending has improved. as of end - october 2021, banks ’ total loan portfolio expanded yearon - year by 3. 3 percent to p11. 0 trillion. non - performing loans ratio remained manageable at 4. 4 percent over the same period. 1 / 3 bis central bankers'speeches banks remained profitable, recording an annualized net profit growth of 8. 5 percent last year. capitalization remained ample, with the capital adequacy ratio staying well above the bsp ’ s 10 percent minimum requirement and the 8 percent prescribed by the bank for international settlements. liquidity buffers stayed sufficient, with the liquidity coverage ratio of universal and commercial banks above the 100 percent minimum threshold. while the covid - 19 crisis has brought challenges, it helped accelerate financial digitalization and inclusion. more people started to embrace digital payment platforms and created electronic financial accounts. even before the pandemic, we launched the digital payments transformation roadmap with the twin goals to first, digitize at least half of the total volume of financial transactions and second, have at least 70 percent of filipino adults owning transaction accounts by 2023. to help achieve these goals, we have implemented the digital banking framework, which provides the rules for the establishment of digital banks. in addition, we created the open finance framework, which provides the rules for consent driven use of information for the development of financial instruments that cater to the needs of customers. we are also exploring the digital financial marketplace model, which will allow bank and non - bank players to forge strategic partnerships in enabling consumers to access financial products and services through a one - stop shop platform. we also launched qr ph, which has two use - cases : qr ph person - to - merchant or p2m and qr ph person - to - person payment or p2p. qr ph p2m can help scale the services provided under qr ph, and empower micro, small, or even informal merchants such as sari - sari store owners, wet market vendors, or tricycle drivers. against this backdrop