entrepreneurs. this is because accepting payments via qr is simple and affordable. it simply involves printing out the qr ph code that will be generated by banks and electronic money issuers for consumers to scan. with one bills payment facililty, we will remove the inefficiencies associated with the current fragmented bills payment mechanisms. with this facility, the billers will be capable of collecting from their customers even if the payment service providers of the billers are different from those of the customers. through the request to pay service, we will provide a more flexible way for businesses and consumers to make payments. the payee will only need to send an electronic request for payment to the payer, showing how much is being requested for payment and when it falls due. 2 / 4 bis central bankers'speeches the request offers flexibility by presenting several options, which are : to pay in full, to pay in part, to make a counteroffer for extension, or totally decline the payment. in any instance, the payee is notified of the choice of the payer. this facility will surely be useful for countless business transactions. another initiative in the pipleline is the direct debit use case. here, the payer sends the payee an electronic authority or mandate to draw funds directly from the payer ’ s account on a regular basis. this payment use case is ideal for recurring payments such as monthly rentals, periodic loan amortizations, and quarterly insurance premiums. with digital financial services emerging as the “ new norm ”, the bsp proactively builds a regulatory environment that is conducive to digital innovations. in this regard, we are finalizing an enabling policy for fully digital - oriented banks, establishing “ digital banks ” as a new bank classification. this new and upcoming bank classification is distinct from the other bank types. digital banks will have minimal or zero - reliance on physical touchpoints, since they will conduct end - to - end processing of financial products and services through digital platforms and electronic channels. instead of putting up a branch or a branch - lite unit, these banks shall only be allowed to establish an office dedicated to receiving and addressing customer concerns. the bsp shall emphasize “ quality vs quantity ” when issuing digital bank licenses. this means that we shall continue to adopt prudential standards when granting a digital bank authority, permitting only applicants meeting our financial and risk management requirements. we are now refining our digital banking framework, based

crisis, and with the policy response since march 2020 has helped to avoid the kind of harmful credit supply tightening that characterised the previous global financial crisis. a forward - looking assessment carried out and published at the end of 2020 indicates that banks currently have adequate capital headroom to withstand an adverse scenario without breaching capital requirements. 1 it will remain a policy priority of ours that the banking sector can support economic activity. in reflecting on what we have learned today, the most pertinent short - run issue facing us all relates to the survival prospects of businesses. up to now, the exceptional nature of policy support provided to the sector has meant that companies have in the main avoided insolvent liquidations. as things stand, for many smes, a normalisation of insolvency procedures at this point would lead to liquidation, given the sheer size of the shock they continue to grapple with. given the duration of closures due to public health restrictions, and the uncertainty levels that prevail around future demand in some sectors, it would seem that now is not the time to begin assessing companies ’ survival prospects based on pre - pandemic norms. the scale of potential closures would likely cause an unwarranted degree of damage to the labour market and the economy, including the risk of “ scarring ” which would hamper our economy over the long run. 1 / 2 bis central bankers'speeches this leads to a complex policy challenge that will require our focus throughout the rest of 2021 and beyond : firstly, over what timeframe, and subject to what economic conditions, should the government begin to taper its direct financial supports for businesses? second : at what point should the current system of creditor forbearance begin to adjust, and pre - pandemic insolvency criteria begin to apply? the continuation of unviable businesses indefinitely would lead to long - run economic damage through capital misallocation, a phenomenon sometimes referred to as “ zombie lending ”. similarly, the government must also take its fiscal sustainability into account as it plans for further direct support. however, given that the challenges facing the majority of businesses in financial distress currently relate to a pandemic outside of their control, rather than their own management decisions, as well as the progress with vaccination rollout which means that economic re - opening now feels close, the balance appears currently to weigh on the side of further protection and time for businesses to adjust and trade as conditions normalise. of