will not only improve the operational risk managements of banks but also foster confidence in the banking system. on another note, i would like to take this opportunity to remind everyone that while the delivery platforms for products and financial services may have changed, the banking industry is exposed 3 / 6 bis central bankers'speeches to the same risks credit, liquidity, market, and operational, among others. as such, as we put more resources on information technology systems and infrastructure. an important part of risk governance is having the effective policies, practice, and systems in place to combat money laundering and terrorist and proliferation financing. please allow me to briefly discuss the philippine ’ s recent inclusion the financial action task force ’ s grey list. the financial action task force ( fatf ) included philippines in its latest “ grey list ” of countries, which means that the philippines will be under increased monitoring as we prove our progress against money - laundering and terrorist financing. if we as a nation fail to institute the recommended measures, this may potentially increase the cost of doing business with filipinos, as regulators and financial institutions add another layer of scrutiny on our transactions. while we have not yet received any report on changes in the cost of transactions, we continue to engage different stakeholders to inform them of the actions taken by the country to address the remaining issues identified in the mutual evaluation report. indeed, the philippines swiftly acted on the concerns raised in the report and took a whole of government approach in addressing the issues. we have completed our key commitments and continue to do so in the midst of our fight against the ill effects of the pandemic. on our part, the bsp remains steadfast and committed to implement initiatives aimed at further strengthening banking system ’ s framework and defenses against money laundering, terrorist financing and proliferation financing risks. we will continue with our strategic initiatives to promote awareness and enhance the capabilities of our supervised financial institutions against these risks. moving on, the bsp believes that digitalization and financial inclusion are mutually reinforcing goals. it is in this light that the bsp is espousing an enabling environment to promote responsible and responsive innovation while at the same time ensuring that attendant risks are prudently managed. promoting the growth of the digital financial ecosystem is a win - win proposition for the industry and the public. on one hand, digitalization will allow financial institutions to broaden their client base, tap other revenue sources, and improve operational efficiency. on the other hand, financial consumers will benefit in terms of

may consider sponsoring or conducting studies to contribute to the growing literature on the philippine banking system. we will be happy to be your partner in this endeavor as we also recently created a bsp research academy. the bsp looks forward to our continued partnership in retooling, reskilling, and shaping the professional development of our colleagues in the banking industry. i would also like to recognize the officers and committee chairpersons of the baiphil in the past year under the leadership of our very own assistant governor resty cruz. under their leadership baiphil remained strong and productive despite the ongoing crisis. maraming salamat at mabuhay po tayong lahat! 6 / 6 bis central bankers'speeches