benjamin e diokno : fostering cybersecurity for bangko sentral ng pilipinas ( bsp ) supervised financial institutions speech by mr benjamin e diokno, governor of bangko sentral ng pilipinas ( bsp, the central bank of the philippines ), no occasion, manila, 15 february 2022. * * * to the officers and representatives from the israel embassy in manila ’ s foreign trade administration, members from the bankers association of the philippines, cybersecurity experts, ladies and gentlemen, good day. let me start by thanking the israel ’ s foreign trade administration for organizing this event and gathering experts from the israeli government and private sector to share best cyber - resilience practices and solutions. we hope to engage in conversation on how israel ’ s cybersecurity model and best practices can be adopted here in the philippines and how all of us can work together in combatting rapidly evolving cyberthreats. with the growing popularity of digital channels especially during the pandemic, cyber - attackers and scammers are increasingly targeting financial consumers to defraud them of their hardearned money. we, at the bsp, consider cybersecurity as one of our strategic priorities. this is in line with our mandate of ensuring stability, safety, and efficiency of the financial system. in fostering cybersecurity, the bsp adopts comprehensive, agile, risk - based, and engaging approach which we term as care to stay ahead of our common cyber enemies. this approach cuts across three key areas : first our regulatory policy framework ; second proactive monitoring through our surveillance capabilities and lastly, promoting resilience through supervisory and oversight activities. the bsp is adopting policies and regulations to guide banks and other supervised institutions to take on a risk - based approach to cybersecurity management. since 2013, the bsp has issued several regulations aimed at mitigating the effects of technology and cyber - related risks in bsp supervised financial institutions ( bsfis ). these regulations address various facets of technology, such as social media risk management, business continuity management and multi - factor authentication. recent issuances also include specific guidance on managing data breaches and sms - based attacks as well as combatting ransomware. allow me to share with you some major industrywide initiatives to strengthen the industry ’ s cyber defenses and overall resilience. first, in order to operationalize the bsp ’ s role as the

strong at 6. 5 %, reflecting a preference for liquidity, although it was below the peak of 8. 7 % observed in april 2013. as in previous months, the main factor supporting annual m3 growth was an increase in the mfi net external asset position, which continued to reflect the increased interest of international investors in euro area assets. the annual rate of change of loans to the private sector remained weak. the annual growth rate of loans to households ( adjusted for loan sales and securitisation ) stood at 0. 3 % in november, broadly unchanged since the beginning of 2013. the annual rate of change of loans to non - financial corporations ( adjusted for loan sales and securitisation ) was – 3. 1 % in november, following – 3. 0 % in october. overall, weak loan dynamics for non - financial corporations continue to reflect their lagged relationship with the business cycle, credit risk and the ongoing adjustment of financial and non - financial sector balance sheets. since the summer of 2012 substantial progress has been made in improving the funding situation of banks. in order to ensure an adequate transmission of monetary policy to the financing conditions in euro area countries, it is essential that the fragmentation of euro area credit markets declines further and that the resilience of banks is strengthened where needed. the forthcoming comprehensive assessment by the ecb will further support this confidence - building process. it will enhance the quality of information available on the condition of banks and result in the identification and implementation of necessary corrective actions. a timely implementation of further steps to establish a banking union will help to restore confidence in the financial system. to sum up, the economic analysis indicates that we may experience a prolonged period of low inflation, to be followed by a gradual upward movement towards inflation rates below, but close to, 2 % later on. a cross - check with the signals from the monetary analysis confirms this picture. as regards fiscal policies, it is important not to unravel past efforts but to sustain fiscal consolidation over the medium term. fiscal strategies should be in line with the fiscal compact and should ensure a growth - friendly composition of consolidation which combines improving the quality and efficiency of public services with minimising distortionary effects of taxation. when accompanied by the decisive implementation of structural reforms, this will further support the gradual economic recovery in the euro area and have a positive impact on public finances. reforms in product and labour markets and a rigorous enactment of single market policies warrant particular focus to improve the outlook for economic