the country ’ s gross international reserves remained substantial at us $ 108 billion. this buffer represents 10. 8 months ’ worth of import cover. it is also equivalent to about 5. 4 times the country ’ s short - term external debt based on residual maturity. domestic liquidity 1 / 6 bis central bankers'speeches meanwhile, domestic liquidity is ample. m3 rose by 8. 2 percent year - on - year to p14. 6 trillion in september 2021. the bsp is paying close attention to the dynamics of liquidity in the financial system with an eye toward supporting demand and economic activity. remittances remittances from overseas filipinos remain a reliable source of support for the economy. after a minimal contraction in 2020, cash remittances have rebounded this year. for the first nine months of the year, of remittances were 5. 6 percent higher than the comparable figure in 2020. stability of the banking system the philippine banking system is strong. total assets rose to p19. 9 trillion as of end - august 2021, and deposits are also on an upward trend, standing at p15. 5 trillion. this encourages us to look toward financial intermediation by supervised entities for support for our recovering economy. banks are well - capitalized. the capital adequacy ratios of the universal and commercial banking industry on solo and consolidated bases improved to 17. 0 percent and 17. 6 percent, respectively, in the first half of the year. these remain well above the 10. 0 percent minimum threshold set by the bsp. meanwhile, the gross non - performing loan ratio of the system continues to be manageable, standing at 4. 5 percent in end - august. the npl coverage ratio remains high at 83. 5 percent, providing confidence in banks ’ ability to absorb possible losses. performance of the trust industry the trust industry also continues to grow. after seeing a temporary reduction in the early days of the pandemic, trust assets have rebounded, and have now significantly surpassed pre - pandemic levels. assets under management recorded a double - digit year - on - year expansion of 18. 4 percent, aggregating to p4. 8 trillion by end - june 2021. this is equivalent to 24. 3 percent of the banking system ’ s total assets. the related increase in fees and commissions contributed to the sustained profitability of the industry. the net income of trust institutions rose by p1. 0 billion or 33

effective delivery of financial services to clients. we likewise appreciate our collaboration with the toap as we work to expand the pera ecosystem. the initiative to solicit suggestions from member - institutions is welcome, as there is still a long way for pera to go to reach its full potential. trust entities are valued stakeholders in this initiative. we strongly encourage toap memberinstitutions to develop new products to serve this worthy endeavor. we also look forward to continuing cooperation on pera information campaigns. in closing, the covid - 19 pandemic has changed the way we live, and we find ourselves in a new economy. this reality brings with it a set of challenges, but also new opportunities. one ’ s ability to thrive depends on how one chooses to act. this situation calls to mind a chinese proverb, which goes : quote “ a wise man adapts himself to circumstances as water shapes itself to the vessel that contains it. “ end quote in a time when the environment is constantly changing, adaptability is undoubtedly the key to success. the bsp strongly encourages the toap ’ s efforts toward the improvement of the skills of trust professionals and the enhancement of systems that will allow member - institutions to be more responsive to the needs of the investing public. rest assured that the bsp will continue to collaborate with you on creating an environment conducive to financial growth and innovation, toward our common goal of deeper and more inclusive philippine financial markets. i wish you all a productive two - day toap summit. thank you. mabuhay tayong lahat! 6 / 6 bis central bankers'speeches