and behaviours, interlinked with technological advancement ; and deepening european integration. 1 / 4 bis - central bankers'speeches for the bank, the last decade has been one of new policy development and implementation, of changes in our frameworks, of harnessing deeper and more diverse expertise, and of a growth in staff numbers. it has been a period of responding to change in the external environment, with an enduring commitment to our important public service mission. so the leadership challenge for my colleagues and i in the central bank is to act in a way that is balanced and proportionate, effective and fair and delivers the right outcomes. we operate in a market based economy and the central bank wants to see that the people of ireland, europe and the customers served around the world from ireland are served by a well - functioning system. so when the central bank's board, the central bank commission, of which i am a member, set out the central bank's strategy, it did so in a complex environment. we did this with a commitment to build on what has been achieved to strengthen the resilience of the financial system, enhance protections for consumers and investors, and support economic policy development. the decade ahead will see continued rapid change in economies and in the financial system, driven by technology, by changing demographics, the imperative of responding to the climate and biodiversity emergencies, and a more uncertain world. this requires us then to accelerate our own pace of change to deliver on our mandate and to meet the public's expectations of us. and it requires us to do so in a considered and deliberate way. our strategy then has four connected themes, safeguarding, future - focused, open & engaged, and transforming. they represent a renewal and repositioning to ensure that our direction and ambitions are responsive and forward looking. i'll reflect upon them briefly. firstly, safeguarding. the stability of the financial system and the effective regulation of financial services and markets, while ensuring that the best interests of consumers of financial services are protected, is at the core of our mandate and our work. this word, " safeguarding ", sums up the public's expectations of the bank and its staff and so it takes a central role in our strategic execution. secondly, future - focused. a rapidly changing world, economy and financial system requires a shift in our focus, our analysis and our frameworks. a forward looking approach will mean anticipating and responding proactively to changes in the economy and

initiatives while the bsp has been trying to enhance banks ’ risk management practices, it is also simultaneously working on improving the risk - based capital adequacy framework as empowered under the gbl of 2000. we responded swiftly once the legal framework was put in place. in march 2001, the bsp adopted basel i - type framework through circular no. 280. this circular provided the guidelines for the computation of risk - based capital for credit risk. the bsp ’ s risk - based capital adequacy framework was further enhanced with the issuance of circular no. 360 in december 2002. circular no. 360 incorporated market risk into the framework. in 2005, the focus was on preparing the implementing regulations for the eventual implementation of basel ii in the philippines. at the time, preparatory works on basel ii implementation were already at an advanced stage globally. the discussions during international fora had already become complex and rather extended. for our part, the approach to implementation has been more calculated. certain elements of the basel ii approaches such as those pertaining to risk weights for corporates and npls, were gradually incorporated in existing regulations to pave the way for a smoother implementation of the whole new framework in 2007. meanwhile, in response to heightened appetite and growing exposure of banks to structured products and in preparation for the envisaged take - off of the domestic securitization market following the approval of the securitization act of 2004, the bsp pre - emptively issued in 2005 the risk - based capital treatment of banks ’ exposures to structured products and securitization structures. in support of major policy objectives of enhancing credit access and expediting the clean - up of bad assets from the system, the bsp likewise advanced lower credit risk weightings for high grade corporate debt exposures and micro and sme exposures, but also increased the risk weighting on non - performing loans. this year, the bsp has issued the much - awaited basel ii implementing guidelines for the philippines. the bsp ’ s task force on the implementation of basel ii has just concluded their series of briefings both within and outside of the bsp in preparation for the parallel run that will be conducted starting end this year until mid next year. unlike the existing bsp risk - based capital adequacy framework, the new basel ii - based framework does not only focus on the computation of the appropriate level of capital given a certain level of risk exposure, but it also highlights