a remittance. as of 27 august 2019, there were 14 non - bank e - money issuers supervised by the bsp. fifth, quick response codes or qr codes. the use of qr codes for payments has started to gain traction. in fact, last month, i was able to buy mcdonalds through qr payment option by paymaya. we hope to see more of this in the future ; we hope that even market vendors, cab drivers, and sari - sari store owners will be able to use qr codes as a means to accept payments. to help move this along, the bsp is working with industry players to put in place a national qr code standard that will enable interoperability of qr code - based payment facilities. other ongoing initiatives to advance e - payments are digitalization of government collections and disbursement, and the assessment and monitoring of the country ’ s transition to a more cashlight economy with national payments diagnostics. with these updates, we expect to have at least 20 percent of all financial transactions in the country done electronically by 2020. nevertheless, the bsp is mindful that with innovations come risks. as such, we are keen to make sure the regulatory environment is dynamic and attuned to industry developments. as our regulated entities adopt innovations to enhance delivery of their services to customers, the bsp is likewise embracing technology to improve consumer protection. for instance, the bsp is working to provide an alternative channel for the public to elevate banking - related complaints through an automated chatbot system, which is targeted to go live by mid - 2020. the chatbot, using artificial intelligence ( ai ) and natural language processing ( nlp ), will be able to adequately and efficiently handle consumer concerns coursed through channels including 3 / 6 bis central bankers'speeches sms and social media. in addition, the bsp has developed a prototype that allows machine - to - machine link between the bsp ’ s system and those of its supervised entities for streamlined transmission, processing, warehousing, and analysis of banks ’ prudential reports. targeted to go live by the latter part of 2020, this innovation will significantly improve timeliness, ease, and integrity of data submission. because of these initiatives, i am proud to report that bsp won the “ artificial intelligence initiative ” award and the “ data management initiative ” award by central banking publications during its fintech and regtech global awards held in singapore

along the way, this discussion will help you also understand what all these mean for you and the institutions you represent. let me begin with capital. the bsp is now more “ focused ” on capital adequacy – but from the perspective of strengthening the ability of capital to absorb losses. lest i be misunderstood, i want to emphasize that our regulations in the past were never just simply bis central bankers ’ speeches about exacting compliance to a specific ratio. what is different today is the focus. now the goal is to make capital more efficient in mitigating potential losses from the type of bailouts we saw in other jurisdictions. today, we are ( in a sense ) being “ stricter ” about what goes ( or does not go ) into both the numerator and the denominator of that ratio. by doing this, we are broadening the risks that are accounted for by such capital. this is the bsp view on car from a financial stability perspective. the car should not keep only your compliance officer awake at night … it should concern everyone here, including you who are in the confines of your trading rooms …. ladies and gentlemen, the types of transactions and risks you can undertake will now be defined by the amount and kind of capital your institutions have … but you already know that … from the example of the 15pct risk weight on ndf. it is this kind of policy framework that drives the new regulations we have been putting out … and this is my second point … we now view regulation using the “ systemic ” lens. after the additional ndf risk weight, you must have noted that the bsp has become more visibly concerned with issues that have systemic implications. these are reflected in, among others, the refinements to sda trading, which have been intended to contain possible carry trades funding sdas, and initiatives to improve reporting on real estate exposures, which are expected to ensure that all possible exposures are contained in the net and accounted for in the limits set. these reforms are some of the most recent that we put out … but many more lie ahead – from the money market to the capital market and to the derivative market. some in the pipeline are 1 ) defining the benchmark yield curve so that pricing is transparent and independent of one large market participant ’ s rejections ( i meant actions ) in the auction market, 2 ) awakening the moribund repo markets so that liquidity is improved and one - sided quotes will be a