##ance presents another growth opportunity for rural banks, with microentrepreneurs emerging as both depositors and investors who generate jobs. the crucial steps moving forward ladies and gentlemen, the unfolding scenarios certainly create opportunities for those who are determined to pursue the path of success. for rural banks, this is an impetus to boost operational efficiency, expand product lines, reach out to more markets, increase diversity, lower operating cost and simply right - size the way you do business. after long discussions on such concepts as regionalization, market integration and global reforms, these buzzwords are now a reality. the broad strokes are evident. now you have to decide where to take your bank and how to achieve your vision. you can be proactive or you can simply maintain the status quo. it is all up to you. one thing is certain. the bsp stands ready – as it always been – to be the partner of the rural banking sector in responding to the financial needs of the philippine countryside to reach out to those who remain unserved and to promote sustainable and inclusive growth across our country. maming salamat sa inyong lahat! mabuhay ang ating mahal na bansang pilipinas! bis central bankers ’ speeches

- interest banking capital, particularly short - term capital. i am glad to inform you that these three broad principles have guided us in india during the 90s in the management of our external sector, particularly after the asian crisis of 1997. the results have been extremely positive. we have doubled our foreign exchange reserves in the last three years - and increased them several times over since the beginning of the 90s. they are now adequate to take care of all reversible capital flows as well as current account deficits, and are more than required under the conservative “ guidotti rule ” ( which suggests reserves coverage for one year ’ s capital account liabilities ). india ’ s short - term debt is also very low - and central bank ’ s forward liabilities have been reduced to less than 1 per cent of reserves. this has gained us the confidence of the markets. this has been more than evident even during the recent period of uncertainties. similarly, we have a flexible but managed exchange rate system. according to the latest assessment by the imf and other authorities, our exchange rates have been less volatile than other emerging markets. our exchange rate by any criterion of competitiveness is also believed to be broadly realistic and competitive. we have also witnessed a substantial increase in capital flows particularly foreign direct investment, and much greater confidence by foreign investors in our macro - economic stability. finally, and the fourth point that i want to make, is that international institutions and international community must play a supportive role in resolving a crisis whenever it occurs. for an agency, such as the imf, to play such a role, the essential requirements are : • a substantial increase in its lendable resources in line with increase in the size of international capital flows in the 90s. • a greater automaticity in the availability of finance, subject to a country following reasonable macro - economic policies. the best way to achieve this objective would be to make imf facilities “ automatic ” provided the annual article iv consultations with the country have been positive and favourable. • a third requirement is to provide developing member countries with a much larger voting power than now. it is one of the ironies of the last forty years that, although developing countries as a group, have grown much faster than the developed countries and their relative economic strength in terms of output and trade has increased substantially, their actual voting power in bretton woods institutions has tended to decline! to sum up, let us recognize that the present bretton woods international financial architecture was not equipped