amando m tetangco, jr : the bsp @ 14 – moving with the power of one in the service of the filipino people speech by mr amando m tetangco, jr, governor of the central bank of the philippines ( bangko sentral ng pilipinas ), at the bsp 14th anniversary, bangko sentral ng pilipinas, manila, 3 july 2007. * * * members of the monetary board, fellow central bankers, special guests. magandang umaga po at maligayang anibersaryo sa inyong lahat! we are celebrating the 14th birthday of our institution. kaya naman, dapat bati - in muna natin ang bangko sentral ng pilipinas ng malakas at masayang, happy birthday!!! ladies and gentlemen of the bangko sentral, there are, indeed, many reasons why we should be happy. ang pinaka - mahalaga po dito ay ang matagumpay nating pagtupad sa ating tungkulin bilang central bankers ng ating bansang pilipinas! to be objective about it, let us evaluate how we performed on the basis of each of the three pillars of central banking. first, on monetary policy. did we have a responsive and effective monetary policy? in the last two years, we sharpened our inflation targeting framework and stayed true to our mandate to maintain price stability. we enhanced our capacity to analyze information, increased transparency in our communication with markets, and aligned our policy framework with international norms. by any standard, we did quite well insofar as our monetary policy is concerned. in fact, even as oil prices breached record high levels, we managed to tame inflation at low and stable rates : in june 2005, our inflation rate was 7. 6 % ; last may, it had dropped to 2. 4 %, a level comparable to those in developed countries. second, on banking supervision. as the central monetary authority of the country, our responsibility is to provide pro - active leadership to bring about a “ strong financial system conducive to a balanced and sustainable growth of the economy. ” effective banking supervision as well as responsive policies and programs are key to this task. overall, we continue to perform well in this regard. the banking system has been projecting overall soundness : better capitalization ; lower non - performing loans ; steady expansion in deposits ; and better profitability resulting

people. but beyond central banking, i am particularly proud of the men and women of the bangko sentral who have always been generous with their time and resources to help others who are in need. one central banker who exemplified this generosity of spirit and genuine concern for others was governor rafael buenaventura. to honor him and the qualities that make a good bsper, the monetary board has approved a donation of p5 million to the rafael b. buenaventura foundation which will support early detection and treatment of indigent cancer patients. the generosity of the men and women of the bangko sentral is also the reason why, this morning, we are able to turn over to the gawad kalinga more than p3 million in donations from the hearts and pockets of bspers. and because you have been a blessing to the bangko sentral ng pilipinas, to our country, and to our people, i will now give you the good news you have been waiting for! first, we now have new facilities for bspers and a new exhibit at our money museum. please take time to enjoy all these. second, i am pleased to announce that yesterday, the monetary board approved the institutionalization of an annual performance and salary review in lieu of the merit increase award starting 2007, with two components : component 1 – annual one step adjustment in the salaries of all employees and officials with performance rating of at least “ satisfactory ” in previous year effective january 1 of the year. component 2 – performance bonus in the form of a one - time cash award for those with at least “ commendable ” rating in the previous year. in addition, the monetary board also approved the grant of two steps adjustment in salary effective 1 january 2007, in addition to component 1 of the performance and salary review, limited to the year 2007 grant. i suggest you call your friendly hr personnel to help in your computation. ladies and gentlemen of the bangko sentral ng pilipinas. one thing i can say is this : the monetary board and senior management will always be fair in terms of granting the compensation and benefits you deserve as central bankers imbued with the values of patriotism, integrity and excellence. keep the faith in your management.