amando m tetangco, jr : generating more winners in microfinance speech by mr amando m tetangco, jr, governor of bangko sentral ng pilipinas ( bsp, the central bank of the philippines ), at the launch of the 2015 citi microentrepreneurship awards, manila, 22 may 2015. * * * today we launch the 2015 citi microenterpreneurship awards or cma, a groundbreaking program that has allowed us to discover the creativity, tenacity and generosity of filipino microentrepreneurs across our country. we just heard the testimony of ms. teresita valdez, one of about a hundred cma awardees so far. their stories inspire, inform and motivate those who want to go into business. the challenges they faced and how they overcome seemingly insurmountable odds strengthen the resolve of other entrepreneurial filipinos that they too can succeed in the microfinance sector. indeed, our microentrepreneurs represent a gold mine of lessons and information that has been helping us transform and improve the lives of millions of filipinos through microfinance. ladies and gentlemen. a significant factor in our growing harvest of successful microenterprises stories is a regulatory environment that enables microfinance institutions or mfis to provide appropriate products and services. microentrepreneurs succeed when the regulatory framework is well - defined ; enables various mfis – whether banks, coops and ngos – to deliver a range of microfinance services to their niche markets ; and encourages institutions under our supervision to cater to microentrepreneurs, a market which “ traditional ” bankers tend to sidestep due to perceived high credit risks and transaction costs. in this connection, the bangko sentral ng pilipinas has issued clear guidelines and codes of conduct, so that banks can viably provide an array of products designed to fit the peculiarities of microfinance clients. i can say we are on the right track. the philippine regulatory framework for microfinance has been consistently ranked as one of the best in world by the economist intelligence unit ( eiu ). more recently, the eiu ranked the philippines as the top country in asia, and the 3rd in the world, with the most conducive environment for financial inclusion. the eiu further notes that countries like the philippines with a long tradition of microfinance have better institutional and

and the global financial stability report. these efforts must now be redoubled. from the standpoint of central banks, recent events have underscored not only their role in monetary policy, but also their important function in the stability of the financial system. in this context, research on issues related with financial stability has been dramatically intensified. clearly, there are varied degrees of consensus regarding how to characterize a good financial policy framework, how to measure it, achieve it and preserve it, as well as its possible tradeoffs with monetary policy. this conference seeks to contribute the study and analysis of these topics, as well as cooperating in our management, as policymakers, of financial stability and associated macrofinancial risk. today, our work will focus on defining the concepts of financial stability and systemic risk, and on understanding the conceptual frameworks that support their evaluation and the links with and feedback from monetary policy. garry schinasi will open the day, introducing what we must understand by financial stability and examining the implications and challenges of understanding systemic risk. claudio borio will explore the operational aspects and the precautions we must take regarding the methodologies we use to measure systemic risk. dale gray will handle the third presentation, integrating the idea of financial risk – by using options – with macroeconomic models focusing on monetary policy analysis, then applying the tools to the particular case of chile based on his joint research with leonardo luna and jorge restrepo. johan molin will share with us the experience of the sveriges riksbank, which has led financial stability analysis since the problems it endured in the early 1990s. this afternoon, francis diebold will analyze, for the financial markets of the united states and four latin american economies, stock returns and volatilities to look for evidence of contagion and its characteristics. charles goodhart, dimitrios tsomocos and alexandros vardoulakis will present us the study of a heterogeneous agent model with a real - estate sector and financial fragility. later on, ethan cohen - cole and enrique martinez - garcia will present their research on the interaction of financial intermediation and banking system regulations and its effect on the optimal monetary policy response. tomorrow will begin with the presentation of jaime ruiz tagle and marcelo fuenzalida, who will examine, for the case of chile, the systemic risk of household debt. miguel segoviano will follow, with a review of systemic risk and banking stability from a macro