build, build, build ” program. in deepening the capital market, there is need to secure reliability, quality, and integrity in the pricing and valuation of financial instruments. there is also need to establish an integrated financial market infrastructure. these initiatives are significant in promoting price discovery, transparency, orderly trading, clearing, and settlement of the full range of financial transactions. bsp support for the capital market reform program the bsp is highly supportive of a capital market reform program. we desire a more balanced financial ecosystem where a well - functioning banking system is complemented by deep and liquid debt and equity markets and where there are viable alternative sources of financing for long - term investments, including the development of necessary financial market infrastructures ( fmi ). recently, the bsp in collaboration with the securities and exchange commission ( sec ), department of finance ( dof ), and the bureau of the treasury ( btr ) unveiled a package of joint and coordinated initiatives to spur domestic debt market development to be undertaken over an 18 - month timeframe once we get going. the capital market reform agenda will initially focus on benchmark markets ( the money market and the treasury bond market ). improving discovery of benchmark yields is critical in pricing risk assets. strengthening these foundational elements will facilitate development of the broader capital market. the bsp, on its part, has already implemented various reforms in expanding the depth and breadth of capital market transactions as well as enhancing market conduct. for instance, we have already started the groundwork for project financing under circular no. 914 last year in support of the government ’ s “ golden age of infrastructure ”. the bsp ’ s fine - tuning of the interest rate corridor ( irc ) system to make it even more marketoriented is also aligned with this purpose. the irc system will guide market interest rates closer to the bsp ’ s policy rate. we see this as a contribution to capital market development through better price discovery for very short term interest rates. there is also an initiative to further liberalize foreign exchange ( fx ) regulations to achieve more efficiency and to facilitate ease of doing business. this includes higher standards of governance and conduct for market participants in the fx market. these elements, in turn, will also support the deepening of the domestic capital market. equally important is the digitalization of the financial system. creating an efficient digital platform is complementary to capital and fx market reforms. 3 / 5 bis central bankers'speeches in this area, the

benjamin e diokno : remarks of the governor remarks by mr benjamin e diokno, governor of bangko sentral ng pilipinas ( bsp, the central bank of the philippines ), at the press conference on macroprudential policy direction and public release of the april 2020 fsr, manila, 23 june 2020. * * * colleagues, friends from the media, good morning. thank you for joining us at this press briefing of the financial stability coordination council or fscc. the other members of the executive committee of the fscc are with us online and we are happy to dialogue with you today and in many more occasions in the future. we are holding this briefing to share with you our view on the emerging risks, amidst the covid19 pandemic. indeed, the world is facing the deepest global recession whose effects the imf says have not been seen since the 1929 great depression. yet, our present situation is different because it was not caused by a stock market crash like “ black tuesday ” in 1929 or from excessive credit as was the case in 1997 and 2007. rather than financial market vulnerabilities affecting the macroeconomy, covid - 19 has directly impacted the macroeconomy itself. while we address the public health issues, we want to ensure that these difficulties do not contaminate our financial system and trigger a negative feedback to the real economy. ensuring the continued health of the financial system requires a whole - of - market approach. this is where the fscc plays a critical role in bringing together the department of finance, the securities and exchange commission, the insurance commission, the philippine deposit insurance corporation, the bureau of the treasury and the bangko sentral ng pilipinas to collaborate and address disruptions to and by the financial system which can adversely affect the rest of the economy. we do this by assessing the risk behaviors of those in the financial market, looking at how they interact with one another, identifying the channels through which they interact and, appraising how the outcomes at the level of the overall system can be very different from the simple sum of the parts. you will hear us talk about “ macroprudential policies ” which refer to our interventions for managing systemic risks. i should emphasize that the “ systemic - ness ” of risks is not defined by the size of the initial shock but rather by the pervasiveness of its full effects. we are as mindful of the big shocks