- rediscounting system in just about five ( 5 ) months since the initial unveiling in manila. we expect to expand the number of participating banking institutions by 7 more banks today here in la union and by an additional 11 banks in davao when we launch this system next month. these should bring the overall number of participating entities to 130 banks. in terms of volume of e - rediscounting loans ( as of 31 may 2007 ), we are pleased to report that loans released by the bsp head office in manila already amounted to p10. 6 billion. in addition, the bsp regional offices had released some p700. 5 million e - rediscounting loans during the period. today ’ s launch of the bsp ’ s e - rediscounting system here at the la union convention center is expected to break new ground in bsp lending. the introduction of a real - time loan refinancing facility to help banks in la union and in the neighboring areas of regions i, ii, iii and the car is expected to scale up their lending capability and help pump - prime the local economy. in the process, this innovation in refinancing technology is expected to significantly improve the credit access for exporters and small, medium, and micro - enterprises in this part of the country. these liberalized rediscounting guidelines, together with the requirement under the electronic commerce act of 2000 for government offices to integrate electronic data documents and processes in their transactions, provided the basis for the development of the e - rediscounting system. the preparatory work for the paperless rediscounting scheme began in march 2006, with the issuance of bsp circular no. 515. aligned with the objective of maintaining price stability, new policy guidelines were established under the circular towards a more consistent, transparent, and efficient bsp rediscounting facility. the main objective of the e - rediscounting system is the simplification, standardization, and automation of loan processes and payment procedures. the front - end system of e - rediscounting allows qualified banks to conduct their rediscounting transactions with the bsp through the internet. the back - end system automates the processing of loan applications, crediting of loan proceeds, debiting of the demand deposit accounts of banks with bsp for loan payments and generating account entries – all in less than 10

amando m tetangco, jr : philippine banking – reaping the rewards from prudent reforms speech by mr amando m tetangco, jr, governor of bangko sentral ng pilipinas ( the central bank of the philippines ), at the 2nd asian banker philippine international banking conference, makati city, 6 september 2012. * * * colleagues in banking, fellow stakeholders, ladies and gentlemen, good morning. let me begin by thanking the organizers for holding the 2nd asian banker philippine international banking conference …. when you have a 2nd ( after a 1st ) you create a series … it ’ s like the rocky series ( for those who can still remember ), or harry potter ( to those of this generation ), or batman series or the ipad … the 1st one was a good experience and you want to have more of the same … the organizers did a good job the first time around … today, they again provide a venue for us to take a closer look at the issues that confront us, as they relate to the philippine banking system. and, we look forward, perhaps to a broader asian summit in the philippines at an opportune time in the near future. let me therefore now focus on today ’ s agenda. i will not give you a litany of numbers to prove that the philippine banking system has remained strong in contrast to other jurisdictions. the positive performance indicators are quite familiar to you. for instance, you all know that system resources have been growing, funded by increased balances of deposits and more loans extended to borrowers. let me, however, share with you storylines that are not cited often enough … on the deposits side, growth was faster in the years after the height of the crisis than the years before. between 1999 and 2007, deposits grew a little over 8 % per year. but from 2007 – at the time that the mortgage crisis was already unfolding in the us – philippine system - wide deposit balances increased by 13. 40 % per year all the way to 2011 … on the loan side, the numbers are even more dramatic. loans have been growing at a 10. 62 % pace per year in the last 4 years ( 2007 to 2011 ) when it was growing by only 3. 67 % p. a. in the 8 years from 1999. add to this, the fact that increased loan portfolio was not a case of liquidity chasing after every credit exposure. a simple look at the numbers will show that the npl