without relying only on the collaterals pledged against the credit. we have also streamlined the minimum capital requirement for banks so that it is tiered with the extent of their branch network. at the same time, liberalization of bank branching was undertaken so that banks can better make the business decision of how and where they wish to serve their target constituents. to round this out, we have likewise pursued the longstanding objective of developing our capital markets. recent amendments to our regulations address gaps, particularly in arriving at market rates for purposes of marking - to - market. these new interest rate benchmarking regulations should make pricing of bonds for capital build - up more transparent. all of these are done with the objective of making the regulatory environment more open to the business decisions of service and product providers. they broaden what can be achieved within the banking industry without unduly compromising the regulatory oversight for risks and conflicts of interest. this dovetails with the second facet of how we strike the balance between prudential limits and banks ’ decision - making ability. this is – liberalized access to the banking market. it is critical that our market is “ financially inclusive ” given the structure of the philippine archipelago. this means that access, products and policy have to generate the desired synergies so that we can equally respond to the needs of those traditionally underserved or underbanked. this is a key advocacy of the bsp, for which we could easily devote another forum. even if i limit myself today to the traditional banking market, so much has already happened of late. with the enactment of republic act 10641, we have increased the ownership ceiling of foreign banks to 100 percent from 60 percent, liberalized branching requirements and allowed foreign banks to participate in foreclosure proceedings of real estate properties. with capital infusion and market presence, the expectation is that the law would bolster the local banking industry through greater competition, and the benefits from the transfer of skills and technology. this liberalization of the entry of foreign financial institutions positions us well for the asean banking integration framework. but more than just abif, we have pursued and supported these legislative initiatives because a competitive globally - oriented banking industry is an essential portal for foreign investments. this, in turn, feeds off the investment grade rating we have obtained from international credit rating agencies. bis central bankers ’ speeches while liberalization has its advantages, we recognize that there may be potential issues such as the relaxation of credit standards in the pursuit of

’ s. i am confident that we will be able to attain our goal of an upward economic growth trajectory, in an environment of price and financial stability because we will remain proactive in policy dialogue with stakeholders such as yourselves. pre - emptive in putting in place forward looking policies, and prudent in adopting reforms. ladies and gentlemen, even as the outlook remains favorable, now is not the time for complacency. as the genius behind intel, andy grove, once said, “ only the paranoid survive. ” i wish therefore that your conference would be peppered with just the right amount of paranoia and balanced with enough openness for finding suitable solutions. good afternoon and thank you for your attention. bis central bankers ’ speeches