( q4 2012 ) still ranks one of the lowest in the region. 4 this would suggest that the risk of excessive leverage is less and the threat to financial stability is likewise lower, should asset prices correct. the third challenge involves going the distance in the pursuit of the reform agenda. 1. we are implementing the capital adequacy framework of basel iii in january 2014. we will also be closely studying the other building blocks of the basel iii reform agenda to see how and when we can incorporate these into domestic regulatory environment. 2. capital market reform will be a priority. this will include ensuring that an appropriate market infrastructure is in place. the infrastructure will not only improve the quality of markets, which will help mitigate financial stability risk. but infrastructure will also promote the absorption of the inflows, which will ultimately lead to an expansion of the economy. by improving financial intermediation in the system, a well - functioning capital market will help unlock the economy ’ s productive potential and strengthen its capacity to withstand shocks. right now, we see an economy that is on an even keel, on surer footing, poised for higher growth, riding on a momentum of change that offers the promise of not only stronger growth but also one that is more inclusive and more durable. note : latest available : indonesia 40. 2 ; malaysia 133. 3 ; singapore 151. 8 ; thailand 129. 4 ; japan 221. 2 ; china 153. 1 ; korea 104. 1 bis central bankers ’ speeches the challenge is to keep the momentum of positive change strong. the appropriate response to current favorable winds is not to sit back and relax, not to pop champagne corks as william asked this morning, but to treat them as an ideal opportunity to strengthen the underpinnings of the economy ’ s foundations. the bsp will strive to have monetary policy that will provide an environment where credit and liquidity growth will remain supportive of economic growth while maintaining price stability. we will also continue to work on reforms that will deepen the financial system. we will continue to monitor financial and asset markets and be responsive to emerging risks. we will continue to work with the government in pushing the agenda for reforms to ensure macroeconomic stability. bis central bankers ’ speeches

amando m tetangco, jr : focus on the central bank of the philippines ’ core mandate of promoting price and financial stability opening statement by mr amando m tetangco, jr, governor of the central bank of the philippines ( bangko sentral ng pilipinas ), at the foreign correspondents association of the philippines ( focap ) forum, manila, 4 december 2006. * * * i am pleased to address you in this forum organized by the foreign correspondents association of the philippines. your continued interest in the philippine economy has greatly helped in shaping the quality of information provided to the international community. fora such as this offers us an excellent opportunity to engage various stakeholders in policy dialogue. my short remarks today will focus on the bsp ’ s core mandate of promoting price stability and financial stability and how the institution has responded to the challenges facing it. as fed chairman bernanke aptly puts it “ monetary policy is most effective when it is coherent, consistent, and predictable, while at all times leaving full scope for flexibility and the use of judgment as conditions may require ”. this highlights the fundamental role of transparency and communication in inflation targeting. the more that the public understands the logic of our policy framework and decisions, the more we are able to better manage inflation expectations and the more their behavior will facilitate the achievement of the price stability objective. an encouraging development is that inflation has been on a decelerating trend beginning the second quarter of this year, much earlier than expected. what is bsp ’ s view on the inflation outlook? in our third quarter inflation report, released in october, we noted that our short run prognosis points to subdued supply pressures and uneven demand conditions. subsequently, on november 2, the monetary board decided to maintain the bsp ’ s key policy rates. at the same time, the tiering scheme on banks ’ placements with the bsp under the rp / rrp and special deposits accounts windows was restored. this measure is intended to encourage banks to seek alternatives to placing their excess funds with the bsp such as lending to the public. looking ahead, the bsp is fully aware that it still has to contend with the obvious danger to inflation posed by oil prices and the potential surge in liquidity growth from strong foreign exchange inflows. as risks to inflation are judged to remain tilted on the upside, the bsp will continue to keep a close watch on incipient inflationary pressures, especially those emana