benjamin e diokno : leadership talk - transformation amidst changes and challenges speech by mr benjamin e diokno, governor of bangko sentral ng pilipinas ( bsp, the central bank of the philippines ), at the 76th philippine institute of certified public accountants annual convention, 24 november 2021. * * * members of the philippine institute of certified public accountants led by national president marydith c. miguel, guests, ladies and gentlemen, good afternoon thank you for inviting me to share my thoughts on the topic “ transformation amidst changes and challenges. ” throughout the covid - 19 crisis, the bangko sentral ng pilipinas ( bsp ) has been leading positive transformation for the banking system and the overall economy. in doing so, we observe four principles represented by the acronym “ fire ” — flexibility, inclusivity, responsiveness, and excellence. before i expound on these four principles, let me first briefly discuss latest macroeconomic developments to provide context on the environment banks currently operate in. the economy is well into the recovery process. gross domestic product ( gdp ) grew by 12. 0 percent in the second quarter and 7. 1 percent in the third quarter of this year. the unemployment rate improved from the peak of 17. 6 percent in april last year to 8. 9 percent in september this year. inflation decelerated to 4. 6 percent last october, bringing the average in the first 10 months of this year to 4. 5 percent. while this is above the target band of 2. 0 to 4. 0 percent — driven by supply issues concerning food and energy items — central bank estimates show that inflation will ease toward the midpoint of the target range next year and in 2023. the country ’ s gross international reserves ( gir ) remain hefty at $ 107. 9 billion as of end - october this year, equivalent to 10. 8 months ’ worth of imports. the peso averaged p50. 1 / $ 1 in the third quarter of 2021, depreciating by four percent from the second quarter average of p48. 2 / $ 1. this is not a concern as the country enjoys robust external accounts, and the peso depreciation was driven in part by rising imports of capital goods — a sign of rising investments. the positive macroeconomic developments are in sync with the latest financial sector indicators. as of end - september, the philippine banking system ’ s assets grew year - on - year by 7

, as well as capacity building and awareness programs of the bsp, we are seeing banks lean toward sustainable financing. finally, e is for excellence. excellence requires mastery and commitment in all aspects of professional practice. the very same tenet requires us, central bankers, to master our craft and continually improve our competencies. in the bsp, we capitalize on programs to attract, develop, and retain talent. we have relentlessly pursued excellence through competency trainings, scholarship programs, and mentoring arrangements. we also leverage on digital technologies and data analytics for decision making and continuing education of our employees. in the same way, the bsp endeavors to embed a culture of excellence and good governance among supervised financial institutions. cpas are a big part of this. cpas play an important role in promoting transparency in financial reporting and in reinforcing market discipline. thus, it is paramount to know the best practices in accounting and auditing, and the latest regulatory developments. 3 / 4 bis central bankers'speeches you must be abreast of the latest on philippine financial reporting standards, basel reforms, digital transformation, and sustainability, among other important topics. last july, members of the financial sector forum ( fsf ) — comprised of the bsp, the securities and exchange commission, the insurance commission, and the philippine deposit insurance corporation — entered into a memorandum of agreement with the professional regulatory board of accountancy on the establishment of a “ one - stop - shop ” framework for accreditation of external auditors. this goes to show how regulators value your role in the economy, and we expect all of you in picpa to be our partners in the pursuit of economic recovery and growth by consistently observing the highest level of professionalism. as cpas in your respective industries, being flexible in your action plans to surmount the current headwinds and work toward an inclusive, long - term growth will help you and your organization take full advantage of the possibilities awaiting at the close of this health crisis. rest assured, the bsp will always be a partner in pursuing advocacies that promote the development of the accountancy profession. we count on picpa and its members in helping safeguard the soundness of financial institutions and the financial system. again, congratulations on your 76th annual national convention and i wish everyone a productive discussion ahead. 4 / 4 bis central bankers'speeches