banks ’ financial and social and governance performance ; 3. development of sustainability framework – serves as the embodiment of banks ’ commitment towards green or sustainable efforts. some institutions have even adopted strong 2 / 4 bis central bankers'speeches environmental mission statements to consciously remind them of their responsibilities in environmental stewardship and leadership ; and 4. issuance of green, social or sustainability bonds – proceeds of which were used to fund and refinance renewable energy and energy efficiency projects, among others. during trying times, social bonds were also issued to fund the needs of eligible small and medium enterprises which are greatly affected by the current health crisis. while large banks are considerably ahead in the green or sustainable finance front, we are optimistic that others will soon follow suit. the banks ’ participation in the green or sustainable finance market can send a powerful message of sustainability to the business community, thereby generating greater momentum in this space. the bsp will continue to proactively engage banks during the three - year transition period under the framework to ensure that sustainability principles are incorporated into their strategy resetting exercise, particularly in view of the ongoing pandemic. in championing the sustainability agenda, the bsp is walking the talk. this led us to the adoption of the sustainable central banking program as part of the bsp strategy map for 2020 – 2023. this will culminate with the development of the sustainable central banking roadmap which will provide the milestones, plans, and strategies towards the adoption of sustainability principles in the key operations or functions of the bsp. with the “ new economy ”, the acceleration of payments digitalization is a must. thus, complementary to the sustainable central banking program is the bsp ’ s digital payments transformation roadmap. our goal is to convert at least 50 percent of the total retail transactions to digital form and onboard 70 percent of filipino adults to the formal financial system through the ownership of a transaction account. the bsp also launched several green initiatives. one such initiative is the monetary board paperlite facility that aims to cut paper usage with the shift to a digital agenda. we are also pursuing the bsp ’ s own transformation into a digital native enterprise with largely technology - abled processes. meanwhile, as part of sustainable investment and reserve management, the bsp invested in the bank for international settlements ( bis ) green bond fund in the amount of usd350 million. the bsp is committed to working closely with other financial regulators and authorities to accelerate progress towards sustainable development

imprudence in lending to a particular sector without necessarily affecting credit conditions more generally. targeting a specific area of business might also sometimes help to resolve a collective action problem sustaining a bubble if enough lenders themselves thought risk was being underpriced. that is all about maintaining the resilience of firms as and when the environment proves more threatening than catered for in the standard, static regulatory requirements. there is also the possibility, argued by governor carney of the bank of canada, that maintaining appropriate minimum margining requirements across the cycle would help to prevent liquidity spirals in key funding markets. 9 the basel committee of the global financial system, when under the chair of my new colleague don kohn, has published a review of this important area. 10 the interim fpc will have to advise hmg over the next year or so on which instruments in particular we think we should be granted by parliament. in their different ways, as well as making the system more resilient, they would have the effect of intervening in the ( real ) credit cycle. and so, in some degree, this endeavour recovers something of the spirit of the real - bills doctrine disciples of a century ago. in consequence, this part of the macroprudential scene has, naturally, posed questions about how it will interact with the setting of monetary policy. not that the nominal business cycle and the credit cycle are the same thing or always perfectly aligned. in the years during which the latest crisis was brewed, credit conditions were plainly too loose, but the uk did not obviously experience burgeoning nominal demand growth or upward pressures on underlying inflation. nevertheless, influences will obviously flow in both directions. if the fpc requires lenders to carry higher capital, liquidity or collateral, that will affect credit conditions and so the outlook for aggregate demand and inflation. in the other direction, monetary policy settings plainly affect asset prices, and so influence credit conditions through the net worth of borrowers and lenders. also, it seems to me plausible that they affect risk - seeking behaviour, 11 especially in a world in which many investment managers have nominal return targets. given those two - way interactions, some commentators worry about co - ordination problems from having separate monetary policy and macroprudential committees with different objectives. “ reforming the international financial system ”, mark carney, bank of canada 2009. “ the role of margin requirements and haircuts in procyclicality ”, cgfs paper no