eli m remolona : message during the release of the 2023 financial stability report message by mr eli m remolona, jr, governor of bangko sentral ng pilipinas ( bsp, the central bank of the philippines ), at the release of the 2023 financial stability report, manila, 13 february 2024. * * * magandang umaga sa inyong lahat! i thank everyone for making time to join us here in the bsp [ bangko sentral ng pilipinas ] on a tuesday morning. tomorrow is valentine's day, and we will speak about love and roses! but today, let me talk about the danger of rosy scenarios. today, we present to you our 2023 financial stability report ( fsr ) - an fscc [ financial stability coordination council ] communication tool for managing systemic risk. what is our fsr? it is a report published at least annually, pieced together from the collective wisdom of the fscc, from suggestions by the bsp's monetary board and the fscc agency - offices, and from inputs from other participants of our financial system. the reason for the fsr is that we want to communicate to participants of the financial system to help them make better - informed decisions, and maybe tell us what we may have missed. the challenge is that systemic risk is inherently difficult to comprehend. markets are fluid, and things can change very quickly. some risks arise from our own markets and some risks in foreign markets can spill over onto our shores. the risks that are of the biggest concern are those that are brewing in out - of - sight vulnerabilities, risks that turn out to be contagious and to lead to broader dislocations. you have heard of " black swans " indicating highly unlikely surprises or " the butterfly effect " to describe how small things can lead to far - reaching consequences. these are the things we worry about. indeed, financial market participants often make risky investments based on rosy scenarios. the more widely shared the scenario, the more dangerous it is. when something goes wrong in these scenarios, it sometimes leads to mass panic. there is a rush for the exits, causing massive investments to collapse. this is no idle theory. 1 / 2 bis - central bankers'speeches in 1993, the world bank published a volume called the east asian miracle. it told a rosy scenario about our neighbors, including indonesia, malaysia, thailand, and

amando m tetangco, jr : efforts to provide an integrated national payments and settlements system remarks by mr amando m tetangco, jr, governor of the central bank of the philippines ( bangko sentral ng pilipinas ), at the signing of the moa on the interconnection of pds settlement highway ( psh ) and bsp philpass, bangko sentral ng pilipinas, manila, 29 august 2007. * * * monetary board members ; mr. vicente castillo, ceo, philippine dealing system holdings corp ; mr. ramon sy, president, bankers association of the philippines ; guests from our partners in the banking sector ; bsp officials ; our friends from the media ; ladies and gentlemen, good afternoon! today ’ s moa signing is another landmark in our joint efforts to provide an integrated national payments and settlements system. as partners in the financial reform agenda, we have all vigorously worked together to have the various pieces of the payments puzzle be put together. in the process, we continue to work towards the establishment of the infrastructure that would allow the secure and timely completion of transactions to reduce systemic risk in the financial markets and thereby enhance the integrity of financial transactions. in the course of the last five years, the bsp ’ s philpass has been interconnected with the check and peso clearing results of the pchc, the delivery vs. payment of government securities transactions of the bureau of the treasury, the atm transactions of the megalink member banks, and the payment vs. payment ( foreign exchange ) transactions of the philippine dealing exchange. to date, all the commercial banks and 50 % of the thrift and savings banks and some non - banks performing quasi - banking operations settle these various transactions in the philpass. with the signing of the memorandum of agreement for the interconnection of the philippine dealing system holdings corporation ’ s settlement highway with philpass, all the payment instructions for transactions that would be done through the pds group could now be transmitted directly to the bsp - philpass and effected in the ddas of the counterparties who are philpass member banks or through the ddas of the philpass member bank in their capacity as settlement banks for non - philpass members. these transactions include foreign currency transactions, interbank and interdealer repo transactions, and interbank fund transfers. it is also worthy to note that this interconnectivity comes at very minimal cost. this is because the infrastructure