ratio ( car ) stood at 16. 7 percent as of end - 2017. this is higher than the bsp standard and the global norm. this is evidence of the industry ’ s commitment to build adequate buffers for risk - taking. net income of p17. 9 billion in 2017 yielded 12. 7 percent return to shareholders. this came about from the steady growth in net interest income ( nii ) and more cost - efficient operations. these performance results should encourage the industry to stay on its healthy course. fostering stronger partnership for sustainable growth at this juncture, i would like to express gratitude to ctb for its exemplary dedication and commitment in supporting bsp ’ s mandate and advocacies. notable is ctb ’ s pivotal role in the industry ’ s adoption of the ulama and the lendr platform. for this, ctb was chosen as the outstanding strategic industry partner in the 2017 awards for bsp stakeholders. we reaffirm our continued partnership with ctb in the pursuit of prudential reforms, particularly risk and corporate governance standards. we recently issued the minimum prudential liquidity requirements for stand - alone tbs and other small banks. the minimum liquidity ratio ( mlr ) will promote resilience to liquidity shocks. to differentiate risks among bank borrowers, we are currently studying adoption of the risk - based pricing framework for bank loans. this will encourage good borrowers to avail of more loans because of the lower interest on account of their good credit standing. moreover, the proposal aims to reduce potential systemic risk from competitive pressures that may result in lower interest rates even for customers with poor credit quality. 2 / 4 bis central bankers'speeches parallel to this, the bsp fervently hopes to on - board all filipinos into the financial system. to make banking services more accessible, we issued the framework for basic deposit accounts. we trust that thrift banks will be at the forefront of opening basic deposit accounts. we trust that thrift banks will be at the forefront of opening basic deposit accounts. part of our strategy is the deepening of financial education and consumer protection initiatives, as well as leveraging on available digital technology to have greater scale in banking. charting the course towards digitalization a fintq inclusive digital finance report for 2017 – 2018 highlighted the huge opportunities for financial service providers to innovate financial products and services that offer the greatest potential in transforming the country ’ s financial landscape. thrift banks can take advantage of

inflation outlook is surrounded by significant uncertainty, and we will continue to follow a data - dependent approach to determining the appropriate level and duration of restriction. annexes 7 july 2023 slides english 1. i would like to thank thomas mcgregor, annukka ristiniemi, eliza lis, malin andersson, belen gonzalez, bruno fagandini, anna beschin and giulia gardin for their contributions to this speech. 2. de santis, r. a. and stoevsky, g. ( 2023 ), “ the role of supply and demand in the post - pandemic recovery in the euro area ”, economic bulletin, issue 4, ecb. 3. hahn, e. ( 2023 ), “ how have unit profits contributed to the recent strengthening of euro area domestic price pressures? ”, economic bulletin, issue 4, ecb. 4. for a comprehensive discussion of this topic, see lane, p. r. ( 2022 ), “ inflation diagnostics ”, the ecb blog, 25 november. 5. rubene, i. ( 2023 ), “ indicators for producer price pressures in consumer goods inflation ”, economic bulletin, issue 3, ecb. 6. the increase in services inflation mainly reflects the increase in services inflation in germany, which increased to 6. 1 % from 4. 4 % due also to an upward base effect following the temporary introduction of the 9 euro ticket in june 2022. 7. arce, o., hahn, e. and koester, g. ( 2023 ), “ how tit - for - tat inflation can make everyone poorer ”, the ecb blog, 30 march. 8. see also lane, p. r. ( 2023 ), “ underlying inflation ”, lecture at trinity college dublin, 6 march. 9. the ecb monitors several indicators of underlying inflation. these can be broadly grouped into three categories : ( i ) exclusion - based measures, ( ii ) trimmed measures, and ( iii ) model - based measures. 10. ehrmann, m., ferrucci, g., lenza, m. and o ’ brien, d. ( 2018 ), “ measures of underlying inflation for the euro area ”, economic bulletin, issue 4, ecb. 11. hahn, e. ( 2023 ), op. cit. 12. see also lane, p. r. ( 2023