the parallel market to the formal market. we have streamlined fx requirements for the banking system to reduce market fragmentation and increase fx liquidity. we expect responsible behavior among market players. we have a collective responsibility to consistently build our markets to rise above the desire for short - term gains. on the regulatory front, we are pursuing continuous improvement aligned with global standards and best practices. the bsp is rolling - out the enhanced liquidity risk management framework. we are prescribing guidelines on the adoption of accounting standards to promote transparency and fairness in both financial and prudential reporting. the bsp is also continuously working to ensure that financial industry participants are sensitive to, and proactive in, addressing emerging cyber threats. we are enhancing as well our aml - cft compliance posture. the bsp continues to create a supportive policy environment for financial inclusion. banks are now allowed to use third party cash agents for increased on - boarding of the unbanked. we allow reduced know - your - customer ( kyc ) rules for certain low - risk accounts and use technology for face - to - face contact requirements to promote bank account ownership. we have created the framework for opening basic bank accounts. the bsp is also working closely with the national government for the implementation of a biometric - based national identity system to facilitate maximum access to financial services. we are also making big leaps in developing the country ’ s payment system even as we continuously improve the existing arrangements. today, we are capable of producing 43 million pieces of high quality currency notes per month, up from just 6. 5 million pieces 25 years ago. we also produce 200 million pieces of coins per month. our real time gross settlement system, philpass, processes 6, 000 transaction valued at php 1. 4 trillion per day. but we are upgrading it further to do more as we roll out the national retail payment system that will pave the way for the digitalization of our financial system. already, we have together launched pesonet and instapay. more inter - operable and cooperative payment schemes will follow soon. closing remarks as i close, i remind that as market stakeholders, to better navigate a more interconnected and sophisticated financial market system, we must be mindful of changes that are reshaping it. we must embrace the work that needs to be done, to stay... not only abreast, but ahead of developments. this task of navigation is, and has, never been an easy

will entail systematic market research, as well as an innovative mindset. the g in big is for guide. guide your banks in navigating through this dynamic and constantly shifting operating landscape. banks will need to keep abreast of developments and adjust to the changing demands of the market. ladies and gentlemen. this is my big challenge to baiphil. with big in place, i believe our banks will be able to drive and optimize the benefits and opportunities that financial inclusion and integration stand to generate. finally, i thank baiphil once again for its continuing support to the bsp in promoting good money habits among teachers, parents of our schoolchildren and other adults from the marginalized sector, through your personal finance management lectures. we have been receiving good feedback for this bsp - baiphil program. therefore, let us commit to continue working together, let us be faithful to what we set out to do – big or small, and then we can look forward to bigger and better things that are yet to come. for your information, this is the 11th time i have attended baiphil ’ s induction ceremony. i have been faithful and consistent to baiphil. the bsp has been faithful and consistent to bis central bankers ’ speeches baiphil. therefore, insofar as staying true to your theme of “ building capacity for financial inclusion and integration ”, we, at the bsp expect nothing less than enduring commitment from baiphil. ladies and gentlemen. you have it in you to help unlock the growth potential in our people, in our economy, and in our country, if you continue to pursue financial inclusion and integration with unwavering dedication. if we succeed, then the market for banking services expands, deepens and strengthens the philippine banking industry in the process, even as we help improve lives, liberate millions of filipinos from poverty, and bring prosperity to filipino homes. let this be our goal and our enduring legacy. i look forward therefore to baiphil remaining faithful and steadfast, like a diamond, in its pursuit of capacity building for financial inclusion and integration. thank you for your kind attention. mabuhay ang ating mahal na bansang pilipinas! mabuhay po tayong lahat! maraming salamat! bis central bankers ’ speeches