will entail systematic market research, as well as an innovative mindset. the g in big is for guide. guide your banks in navigating through this dynamic and constantly shifting operating landscape. banks will need to keep abreast of developments and adjust to the changing demands of the market. ladies and gentlemen. this is my big challenge to baiphil. with big in place, i believe our banks will be able to drive and optimize the benefits and opportunities that financial inclusion and integration stand to generate. finally, i thank baiphil once again for its continuing support to the bsp in promoting good money habits among teachers, parents of our schoolchildren and other adults from the marginalized sector, through your personal finance management lectures. we have been receiving good feedback for this bsp - baiphil program. therefore, let us commit to continue working together, let us be faithful to what we set out to do – big or small, and then we can look forward to bigger and better things that are yet to come. for your information, this is the 11th time i have attended baiphil ’ s induction ceremony. i have been faithful and consistent to baiphil. the bsp has been faithful and consistent to bis central bankers ’ speeches baiphil. therefore, insofar as staying true to your theme of “ building capacity for financial inclusion and integration ”, we, at the bsp expect nothing less than enduring commitment from baiphil. ladies and gentlemen. you have it in you to help unlock the growth potential in our people, in our economy, and in our country, if you continue to pursue financial inclusion and integration with unwavering dedication. if we succeed, then the market for banking services expands, deepens and strengthens the philippine banking industry in the process, even as we help improve lives, liberate millions of filipinos from poverty, and bring prosperity to filipino homes. let this be our goal and our enduring legacy. i look forward therefore to baiphil remaining faithful and steadfast, like a diamond, in its pursuit of capacity building for financial inclusion and integration. thank you for your kind attention. mabuhay ang ating mahal na bansang pilipinas! mabuhay po tayong lahat! maraming salamat! bis central bankers ’ speeches

adjustments in our monetary tools, which were calibrated and timed so as to 1 ) rein in domestic liquidity growth, 2 ) pre - emptively arrest possible second - round effects of supply shocks and 3 ) anchor inflation expectations. 3 so far, the numbers reflect that these moves have achieved what they were set out to do. with the latest fed communications pointing to a more dovish approach to its tightening plan, the bsp may be able to bide some time to allow these policy adjustments to pass through to the economy. 2. the bsp also issued several regulatory reforms to further strengthen risk management practices in the banking system and enhance capital buffers against possible unforeseen shocks. these measures include : ( a ) implementation of real estate stress test ( rest ) ; ( b ) approval of enhanced regulation on credit risk management of banks and quasibanks ; ( c ) approval of guidelines for determining so - called “ d - sibs ” or banks which are deemed systemically important within the domestic banking industry ; and ( d ) increase in the minimum capital requirement for all bank categories, on top of the capital requirement under basel 3. putting the principle of synergy into action 1. the bsp recognizes the importance of the synergy principle in dealing with risks to price and financial stability. thus, we coordinate with other agencies such as the national food authority and department of agriculture on issues related to prices of rice and other crops ; energy regulatory commission on power rates ; and land transportation and regulatory board on public utility vehicle fares. 2. the bsp is also an active member of external committees that broadly endeavor to strengthen and protect the country ’ s financial sector. these include the financial sector forum ( fsf ) and the financial stability coordination council ( fscc ). 4 the main goal of the fsf is to harmonize financial regulations and address any financial regulatory gaps, while the fscc aims to identify, manage and mitigate the build - up of systemic risks. these are consistent with the overall prudential objective of financial stability. we are pleased to note that as of end - 2013, we have recorded 1. 5 million micro - deposit accounts and a total of p8. 7 billion microfinance loans availed. we have also recorded about 837 thousand msmes with outstanding loans from banks amounting to p385 billion. these include : ( a ) increasing key policy interest rates by a total of 50 bps to 4. 0 percent