room to keep its policy rates steady to provide a further anchor for stability. a second potential source of vulnerability are shifts in chinese economic policies – 1 ) from a growth model that relies on exports and fixed investments to one which is driven by domestic demand, and 2 ) to a more market - oriented ( and weaker ) rmb. early expectations were that the shift to domestic demand would result in significant slowing in chinese growth, which could dampen exports of its trading partners, such as the philippines. more recent forecasts, however, show a somewhat less dire outlook on china due to fiscal and monetary support from the authorities, easing risks of knock - on effects on trading partners and demand for international commodity prices. on the other hand, the policy of a weaker rmb is not expected to lead to stronger competition against our exports because we have a relatively low degree of export similarity with china. 1 should the policies of the chinese authorities indeed bring about more sustainable growth, this should be overall positive for us as it reduces global tail risks. a third risk is brexit. the direct impact to us of a slowdown in the uk would be minimal, given that our exports to the uk account for only 0. 8 pct. of total exports. it is the possibility of second round effects on the eu, however, that is more concerning because exports to eu account for 11. 5 percent of total exports. we therefore need to remain watchful of developments in the uk, particularly during the transition to “ exit. ” on the domestic front, we have to contend with natural calamities. while no one can fully prepare for the wrath of nature, the country has put in place policies that will help ensure we have adequate supply of staple foods, particularly rice. in short, ladies and gentlemen, the philippines is not immune to risks but our view is that these risks right now are manageable. the balance – short vs. long - term dynamics on balance, the philippines continues to forge an economic growth story that puts emphasis not only on strength but also on long - term stability and resilience. the fact that the philippines has just entered the “ demographic window ”, in contrast to the aging population of some neighboring economies, undergirds our long - term resilience. we have a young and vibrant population that is both a steady employment and consumer base, that opens up a lot of possibilities for investment. many industries are already burgeoning and seizing the opportunities the demographics present. there

benjamin e diokno : opening remarks during the signing of the establishment of a supervisory college for financial conglomerate supervision opening remarks by mr benjamin e diokno, governor of bangko sentral ng pilipinas ( bsp, the central bank of the philippines ), during the signing of the multilateral mou on establishment of supervisory college for financial conglomerate supervision, manila, 24 january 2022. * * * good morning. it is my pleasure to welcome our financial sector forum principals, emilio aquino, chairman of the securities and exchange commission ; dennis funa, commissioner of the insurance commission ; and sandra diaz, senior vice president of the philippine deposit insurance corporation to witness another momentous event for the forum. in line with the principles for the supervision of financial conglomerates of the basel committee on banking supervision, the financial sector forum created the financial conglomerate supervision committee which is tasked to work towards identifying conglomerate risks in the financial system ; and to plan ahead supervisory initiatives to mitigate conglomerate risks. the basel principles highlight, among others, the need for a clear legal framework that provides supervisors with the necessary powers, authority and resources to perform, with independence and in coordination with other supervisors, comprehensive group - wide supervision. the principles re - affirm the importance of supervisory cooperation, coordination and information exchange. in the 2020 financial sector assessment program technical note on supervision and regulation of financial conglomerates, the international monetary fund recommended the implementation of a multilateral agreement among financial sector forum member agencies on the establishment of supervisory college to agree on the approach of group level risk assessment for financial conglomerates. the establishment of a supervisory college is an important regulatory platform in achieving effective and efficient supervision of financial conglomerates. it is also an international practice amongst international financial supervisory authorities. thus, this memorandum of understanding shall govern the establishment of an inter - agency cross - sectoral supervisory college which shall serve as the forum, to facilitate cooperation and coordination between and among the financial sector forum member agencies specifically, for the supervision of financial conglomerates in the philippines. this supports a clear process for coordinating various roles and responsibilities of the financial sector forum with clearly delineated responsibilities for effective supervision. as such, we would like to re - affirm the spirit of collaboration by signing the memorandum of understanding on the establishment of supervisory college for financial conglomerate supervision. finally, let me share a quote from the american industrialist and business magnate, henry ford. he said that a€œcoming together is a beginning, staying together is progress, and working