agenda of pursuing financial stability and mitigating systemic risks. regulators talk of this continuously and we have set this as a threshold of prudential policy moving forward. many may argue however that financial stability is best left to regulators. after all, each bank is well aware of its own actions, its balance sheet and performance metrics but certainly not of each and every other bank out in the market. should you not then focus on the bottom line and leave the “ big picture ” to the prudential authority? this is an easy argument to make. but i believe it to be only half true. while regulators need to understand and take action on what can impair the system as a whole, this cannot be simply a task of one stakeholder. how can the greatest good be achieved if not all stakeholders assume collective responsibility? we believe that it is useful for all other stakeholders to have a working appreciation of that same big picture that regulators routinely worry about. from a capacity - building standpoint, this is ground zero. all other training initiatives will emanate from this. capital market issues such as products and markets, pricing and valuation, and market infrastructure easily emanate from the same framework. all these training topics are quite technical in their own regard but there is a direct way to make them part of one common objective. training opportunities in the basel accord, icaap, stress testing, risk management, good governance, compliance framework, among others, can then be brought to bear on this singular prudential goal of achieving stability. final thoughts ladies and gentlemen, while we have made strides, we should not rest on our laurels. to say that much more needs to be done is an understatement. the truth is that a lot more than “ much more ” must be done if we are to continuously move forward. but the tasks ahead are not independent strands but should instead be seen as part of a single process. just like the relays in athletics, each stakeholder plays a unique role so that the baton is faithfully passed on from one leg to the next. those of you who know the 4 - by - 100 relays understand that the winning team is not always made up of the four fastest runners. relays are not only about sheer speed. rather, most races are won – and lost – in the baton hand - off. capacity - building is just like these competitive relays. the skill set that one develops is the speed that allows us to

further liberalizing foreign exchange rules. currently, we are drafting a set of circulars that will remove prior bsp approval for most private sector transactions. we aim to simplify registration processes, significantly reduce documentary requirements, and enhance data capture for effective policy decision - making. the amendments to fx regulations is just part of a broader thrust for a better organized fx market. over the medium term, we shall be rolling out a sequence of reforms that will increase fx market transparency, improve price discovery, and enhance market conduct. with these reforms, we hope to encourage fx flows from the parallel market to the formal market. even as we strengthen oversight over money service businesses ( msbs ), we will streamline fx requirements for the banking system to reduce market fragmentation and increase fx liquidity. this allows individuals and businesses greater and easier access to foreign exchange. ultimately, a deeper fx market will enhance resilience of our domestic economy against external shocks. the goal is to increase its ability to absorb large flows even as the bsp continues to pursue a market - determined exchange rate and allow greater exchange rate flexibility. we believe competitiveness can also be achieved on the firm and country - level through development of alternative sources of funding. in this regard, we are collaborating with other government agencies and private stakeholders to take measures to deepen our domestic debt market so that you, our esteemed businessmen and exporters can have a viable alternative to bank borrowing, supportive of economic growth. taken together, the fx and domestic debt market development initiatives are game changing reforms as these will increase availability of more financial products, especially hedging instruments. this is something that will benefit exporters, since hedging products can help protect you against interest rate and fx volatility. hedging allows you to focus on your core business. another major reform we are pursuing is the digitization of the financial system. last november 8, 2017, the philippine electronic fund transfer ( eft ) system and operations network, also called pesonet, was launched at the bsp. the pesonet is the first automated clearing house ( ach ) under the national retail payment system ( nrps ). the nrps lays down the principles that guide bsp ’ s strategic initiatives to modernize our retail payment system and to shift from a cash - heavy to cash - lite digital economy. the pesonet will be the electronic alternative to the paper - based check system. businesses will be able to conveniently transfer funds maintained