the bsp, our work could not be accomplished by the bsp working alone, but only through continued discussion and cooperation with others, like government agencies, institutions, other regulatory bodies, private organizations and entities. this is a belief we strongly hold and will continue to hold here in the bsp. this morning we have one - hundred and forty six ( 146 ) outstanding partners that we acknowledge. you are government agencies and departments … private businesses … leaders in your respective industries. you, our honorees and stakeholders are here today because you helped the bsp in its programs. but did you know that beyond the altruism you displayed, where you extended assistance willingly and often without expectation of anything in return from the bsp, there was in your actions, a reward that will ultimately redound to the fulfillment of a shared vision and dream? in the bsp, all employees know our vision by heart. memorize nila ito. our vision is to be a world - class monetary authority and a catalyst for a globally competitive economy and financial system that delivers a high quality of life for all filipinos. a high quality of life for all filipinos. this includes each person here in this assembly hall. and with your contribution, with the assistance you gave us, this is precisely what you are helping us achieve. so, for this, we thank you. 1 / 3 bis central bankers'speeches please give yourselves a warm round of applause. this is not rhetoric. for example, the outstanding survey respondents and information partners here who assisted the bsp, helped us in formulating data - driven monetary policy. the responses you gave and the information you provided underpinned enabling decisions that allowed the philippine economy grow by 6. 4 percent in the first quarter of 2017. you helped so that the philippines continues to be one of the fastest growing economies in asia. stakeholder participation is essential so that even amidst confounding global developments such as the brexit and the united states ’ seeming turn to protectionist policy, we can stand resilient and stay calm, with inflation at 3. 1 percent in the first half of 2017, well within the government ’ s inflation target range for the year. our external payments position remains manageable. robust remittances from overseas filipinos and ample receipts from the business process outsourcing sector continue to fuel economic growth. the country ’ s external debt remains at sustainable levels, with the ratio to gdp improving in q1 2017 to 24

the area of payments, amending the payment services directive, and also proposing a new payment services regulation. these developments are important to strengthen further the resilience of supervised entities, combat and mitigate payment fraud and level the playing field between banks and nonbanks. furthermore, the enactment of the digital operational resilience act ( dora ) of the european union earlier this year, is a critical milestone and accomplishment. the european banking authority and the other european supervisory authorities, have a critical role to play in its smooth implementation. dora introduces advanced ict risk management requirements, threat - led penetration testing and, importantly, oversight of third party providers, including bigtechs. 2 / 3 bis - central bankers'speeches going forward, legislators and supervisors need to ensure that the existing and prospective legal framework does not leave significant room for undetected risks, while the level playing field should be strengthened. in addition, mechanisms should be developed at the global level to enable supervisors to cooperate effectively across borders. in this way, the stability of the financial system will be safeguarded, while combating money - laundering risks and protecting consumers. i take this opportunity to say a few words about the innovation hub that the central bank of cyprus set - up earlier this year. we see the innovation hub as a vital platform to encourage, promote and support fintech innovation, while maintaining regulatory oversight. the innovation hub can serve as a bridge between regulators, fintech startups and established financial institutions, facilitating dialogue, collaboration and knowledge - sharing. it provides a safe space for fintech firms to enter into a confidential dialogue with the central bank of cyprus, presenting their innovative products and business models and receiving feedback on regulatory requirements. the hub also enables the central bank of cyprus to gain valuable insights into emerging technologies, risks and trends, allowing us to adapt our regulatory framework effectively. an equally important initiative is the project on " digital onboarding " for the banking sector, which was launched by the central bank of cyprus, despite the fact that it is not within our duties to do so. we initiated this project, as we are convinced it brings multiple benefits to banks and to the real economy. in parallel to this, and with the aim to address the risks associated with the general digital transition, the central bank of cyprus has already required licensed institutions to carry out a series of actions on an annual basis, including annual anti - intrusion testing of their critical systems to address cyber risks. the importance of cyber risk has increased over the past