a common diagnostic tool to help us improve corporate governance standards. each country in the region is expected to build on these standards to create their own corporate governance framework, which should clearly articulate expectations on ( among others ) the fitness and propriety of the board, checks and balances, and transparency. the fundamental principle is that the tone of good governance should be set and come from the top. it should remain the highest priority as it emphasizes the importance of having “ fit and proper ” standards for individual board members. these standards, we believe, should put as much weight on integrity, as on knowledge, expertise and competence. fitness and propriety are also displayed in the exercise of independent and objective judgment. the “ state ” of independence is defined by parameters on term limits, a cap on the number of concurrent independent directorships and the challenge of a seemingly limited number of qualified independent directors. systems of checks and balances should likewise be deeply embedded across all levels in the company. unquestionably, an environment that fosters transparency should be the new norm. a system for cooperation and collaboration among government bodies, regulators, and supervisors should be in place to ensure reasonableness of disclosure requirements. we must display the will and capacity to implement standards and take enforcement actions, if needed. a business model that often draws discussion and one that is almost always associated with our region – is related party interest. while we recognize that such a corporate structure has inherent risks, we must also be mindful that synergies can lead to success of individual companies. it would therefore be beneficial to set higher oversight and control standards. this, to address conflict of interest concerns and propriety of related transactions. our own efforts at the bangko sentral ng pilipinas with respect to our supervised entities follow the global thrust closely, while at the same time being mindful of emerging domestic industry concerns and unique situations in our legal and regulatory environments. however, regulation chris razook, corporate governance challenges facing southeast asia, the ethical boardroom, spring 2015. in www. ifc. org last accessed 11 november 2015. gianni de nicolo, luc laeven, and kenichi ueda, corporate governance quality : trends and real effects imf working paper series wp / 06 / 293. december 2006. oecd, reform priorities in corporate governance in asia : taking corporate governance to a higher level ( 2011 ), http : / / www. oecd. org / corporate / ca

program. i hope therefore to see more banks and other institutions support this crucial undertaking not only as a matter of corporate social responsibility, but as a legitimate and sustainable business opportunity that should make our economy stronger. we also know that an inclusive financial system makes for greater stability. ladies and gentlemen of the banking community. i also call on you to make sure that your banks and all your branches serve the public by exchanging old banknotes identified for demonetization with new generation banknotes even if they are not your regular clients, even if they are sidewalk vendors exchanging just a handful of old banknotes. this is financial inclusion at its best. the bsp also pins its hope on gaining mileage on its financial inclusion targets with the launch of our national retail payments system project. the nrps is envisioned to provide an accessible, inclusive and safe electronic payments system using inter - operable payments network that financially links the country – from batanes to sulu – 24 / 7. amid all these exciting developments, we have also introduced the financial consumer protection framework to ensure that new participants to the financial system are provided sufficient guidance and protection. this calls for pro - active programs for consumer education, transparency and providing necessary information for redress mechanisms. i look forward to the active participation of banks in this activity. indeed, we have a full agenda that will help maintain the strength and stability of our banking sector. “ how central banks influence interest rates ” speech by mr øystein olsen, governor of norges bank ( central bank of norway ), at the centre for monetary economics ( cme ) / bi norwegian business school, oslo, 1 october 2015. http : / / www. bis. org / review / r151002b. htm bis central bankers ’ speeches in this connection, the entry of new foreign banks under our liberalized regime should further enhance the quality of competition among our banks and nurture innovations that will ultimately benefit the general public. this reminds me that during our co - chairmanship of the financial stability board consultative group for asia, then vice minister masamichi kono of the japan fsa, advised that we should enjoy a cup of matcha or green tea to get us going through the day and that we should take mugicha at night to relax. in the same spirit, we can all enjoy ginseng tea or maesil cha from south korea, oolong tea from taiwan or teh tarik from singapore. all of these are said to