for us from this new law : first, foreign banks can serve as vehicles for foreign direct investments into the philippines ; transfer of technology is second ; and enhancement of human resource skills is third. all these will strengthen our banking system at a time when we are gearing up for the asean banking integration framework. the irr of this law reflects enhancements in the entry criteria for foreign banks – in particular, the new law focuses on the demonstrated expertise of a potential entrant as an established, reputable and financially sound bank. in addition, foreign banks interested to enter the philippines are required to be widely - owned and publicly - listed in their home country. in evaluating the entry applications of foreign banks, the monetary board shall also consider strategic relationships and reciprocity rights. this should reassure some sectors who fear that this law opens the floodgates to foreign entry. indeed, there are requirements foreign banks have to meet and standards they have to hurdle. i am also pleased to share that our regulations and programs enabled us to gain more ground in our goal to develop an inclusive financial system. in this connection, we continued to widen the reach of our financial learning program. we have also started the groundwork for a formal national financial inclusion strategy that will pull together the efforts of various government agencies for a holistic approach to inclusive growth. in other words, ladies and gentlemen, against a backdrop of solid growth, stable prices and a strong banking system, the philippine economy is entering 2015 well - placed to face challenges from both domestic and external sources and move on to sustain growth amidst new challenges. independent credit rating agencies affirm this. in october 2014, moody ’ s joined standard and poor ’ s in rating the philippines one notch above the minimum investment - grade credit rating. in raising the rating, moody ’ s cited the government ’ s ongoing efforts to reduce debt, improve fiscal management, and minimize vulnerability to external developments. risks moving forward in 2015 moving forward, what do we see in 2015? what i can tell you with certainty is that 2015 will be a year of challenges and opportunities. bis central bankers ’ speeches externally, we see global growth continuing to be uneven – strong in some countries and fragile in other economies. as a consequence, monetary policies across the globe will continue to diverge as their economies move into opposite directions. we see, on one hand, the us federal reserve and the bank of england taking steps toward monetary policy normalization, as growth in their jurisdictions gain traction. on the

edward lloyd ’ s coffeehouse began covering maritime risks, the industry has helped others absorb the effects of damaging events. in doing so insurers have helped people progress and businesses boom. of course, as we at dnb know all too well : those who deal within an industry based on trust and reliability must themselves show outstanding behavior. in other words : insurers must adhere to the highest of principles. • and luckily many of them do and more than that! i can give you several impressive examples of insurers stepping in to help rebuild and reimburse damages, even beyond what was promised. • take for instance a lloyd ’ s member named cuthbert heath : in 1906 a massive earthquake destroyed much of san francisco. bis central bankers ’ speeches heath insisted on paying not just for earthquake damage but also for what was destroyed by the fires that raged thereafter for three days. he instructed his san franciscan agent to pay all policyholders in full, irrespective of the terms of their policies. the agent followed his orders and the insured were promptly paid. • more recently and closer to our home : just days after the tragic event of the downing of flight mh17 in july of this year – in which 298 passengers lost their lives, 198 of whom were dutch citizens – dutch insurers collectively announced they would pay out all damages to policyholders, even if certain terms of their policies would prohibit this. • and to give you a few more examples of the industry helping people to get back on their feet : – it paid out damages after cyclone sandy flooded large parts of new york city ; – it paid policyholder claims when floods and bushfires destroyed lives and properties in australia ; – and it helped people and businesses in japan recover from the destruction caused by the 2011 tsunami. • in doing so in all of these cases, the industry helped those in need and also cemented its reputation as a solid and reliable industry. this promptness to deliver gives people the means to carry on and businesses the confidence to start over. • as for the future, it will be interesting to see how the insurance industry deals with new and emerging risks such as climate change, but also cyber - crime and reputational damage. or how the advent of selfdriving cars will affect their business model. • iais ’ s role in in this cannot be overstated, as it sets standards for supervisors for the development and maintenance of fair, solid and safe insurance markets. • i am confident that this