##tly exercising these principles, yet many are also struggling to do so. nevertheless, the bsp remains confident that our cg - related regulations will continue to guide the banks toward full compliance, further strengthening and enabling them to serve a wider market. environmental, social governance and risk management let me now move on to my second point. risk governance may be influenced by other dimensions, for example shared value3, which refers to ways of doing business that gain competitive advantage, while also improving social, environmental and economic conditions, to achieve the double bottomline of profitability and social responsibility. this is when esg, the set of standards that promote sustainability ; and esrm, a risk management tool that promotes sustainable finance, usually get factored in. and these are areas that we need to explore deeper. sustainable finance is any form of financial service that integrates esg criteria into business decisions to benefit the environment and society at large4. regulators and banks in emerging markets like indonesia, bangladesh and mongolia5 are openly promoting sustainable finance through esg standards. around the world, there is increasing evidence that integrating esg and esrm in business practices result to positive returns, those that get reflected on financial statements, client retention and organizational reputation. equally significant, banks also feel good as they contribute to socio - economic and environmental well - being of the communities in which they operate. the bsp believes that ecological sustainability is a key pillar of inclusive growth, and sustainable finance promises to support this objective. it is consistent with the bsp ’ s drive to establish a responsive, responsible and inclusive financial system that delivers a high quality of life for all filipinos. while bsp policies and regulations already promote shared value through financial inclusion, we feel the need to deepen our understanding of sustainable finance. we have to bridge the gap between what we know about financing and corporate governance, and how or when esg should be integrated. hence in 2013, we began taking baby steps to understand esg and esrm. we became a member of the sustainable banking network ( sbn ) with support from the international finance 2 / 4 bis central bankers'speeches corporation ( ifc ). sbn is a knowledge sharing network of banking regulators, industry associations and esg specialists. we continue to learn and share experiences with like - minded peers and industry players already practicing sustainable finance in other jurisdictions. in 2015, again with ifc support, we completed a scoping study on the extent of industry experience and interest in adopting es

, a series of actions for creating a more dynamic financial market. the macro - prudential measures taken with regard to liquidity and capitalisation ; limitations placed on positions with non - resident banks, provisions and collateral ; and the package of measures for reducing non - performing loans are steps to remedy problems related to the shallowness and narrowness of the market, the low financial inclusion, and the inadequate financial education. studies and analyses of the bank of albania support the logical conclusion that the development of the financial market is an important factor for boosting economic activity and enhancing welfare in general. at the bank of albania, we believe that the current structure of the banking market promotes competition in relation to banking products and services. however, the further 3 / 4 bis central bankers'speeches expansion and deepening of the market is a present challenge for all the relevant actors involved. the banking industry, the bank of albania, other segments of the financial market as both as actors and as regulators, the government, the academia and experts of the field, should be all involved in this effort. our ambitions should aim at having a dynamic and liquid financial market, with upward trading volumes, and a widening spectrum of instruments, including a prolongation of maturity horizons and prudent risk management. this framework should be accompanied by added transparency in all the phases of trading, with financial education assuming a special place. only in this way would we be able to deepen and expand, in real terms, the financial market, and through it a higher efficiency in implementing economic and financial policies, in mobilising and using national savings, in financial inclusion, in economic activity growth, and in enhancing the welfare of the population in the long run. in the hope that the proceedings of this conference will be characterised by a fruitful exchange of ideas and views by the participants in this room, thank you for your attention! 4 / 4 bis central bankers'speeches