consolidation has improved our debt profile and markets ’ view about the commitment of our authorities to difficult but much - needed fiscal rectitude. recent adjustments in fiscal targets could also provide policy space to support growth. the postponement of the balanced - budget objective due to the expected slowdown in the global economy will provide countercyclical fiscal space for the government to boost infrastructure spending and enhance social safety nets to support the most vulnerable segments of the population. the fiscal stimulus – provided that it adheres to best principles of what some would call the 4 t ’ s ( spending that is timely, targeted, transparent and temporary ) or as some would say “ spending that gives the most bang for the buck ” – should be supportive of durable, robust growth. on the external front, we have continued to build up our international reserves for selfinsurance to reduce our vulnerabilities to the inevitable moods and swings of international financial markets. at year - end 2008, our reserves rose to us $ 37. 6 billion. this suffices to cover about 6 months of imports of goods and payments of services and income, or alternatively, it could cover our short - term external debt based on residual maturity about three times over. we were able to do this because our external position remained in surplus in 2008, supported by remittances of overseas filipinos as well as higher services receipts ( including from tourism & business process outsourcing ). meanwhile, the philippine financial system remains stable notwithstanding the challenges brought about by the global financial crisis. the asian financial crisis of 1997 had imprinted valuable lessons which provided the needed cushion for our banking system to weather the current turmoil. for instance, we regulated the real estate sector in relation to housing and mortgage markets ; we implemented stronger bank supervision anchored on managing risk exposures ; we reduced non - performing loans via asset vehicles ; we implemented macro - prudential surveillance with due diligence in implementing internationally accepted standards via the basel ii accord ; and we participated actively in implementing collaboration among asian neighbors for coordinated responses and information - sharing to mitigate contagion effects and spillovers. importantly too, the philippines is relatively well - insulated from key transmission channels of the global financial strains that are affecting other emerging market economies ( emes ). this is so for the following reasons : reasons : • philippine financial institutions have relatively limited exposure to structured credit and related derivative products which were the main cause of the large losses of crisis - affected international banks. it

amando m tetangco, jr : rural banks – portals of inclusiveness for juan and juana dela cruz speech by mr amando m tetangco, jr, governor of bangko sentral ng pilipinas ( bsp, the central bank of the philippines ), at the 62nd annual national convention and general membership meeting of the rural bankers association of the philippines, manila, 18 may 2015. * * * today, we gather to kick off your 62nd annual national convention and general membership meeting. you have set “ new vision, one direction, stronger organization ” as your theme for this conference, the same title as your 5 - year strategic plan. this is certainly a welcome initiative. it reflects the intent of the rbap to look ahead, define your strategic path and communally decide on the tactical actions needed to get you to your desired destination. the vision for rural development but to move forward and reach our destination, it will be useful to pause and also look back. for some, this suggestion may seem counterintuitive. prudence dictates that in creating a vision of what you wish to become, it would be useful to revisit the purpose for which the rural banking system was set up in the first place. republic act 7353 is categorical in that it speaks of “ the establishment of a rural banking system designed to make needed credit available and readily accessible in the rural areas on reasonable terms. ” ladies and gentlemen, the operative words here are : “ needed credit that is accessible on reasonable terms ”. in the simplest of words, this is the vision of the rural banking system. it is quite straightforward. but it is a vision that has turned out to be quite elusive to fully realize. shifting financial markets as we review the current markets we operate in, i would like us to consider two things. first, the broader and larger macroeconomic picture, and second, a more focused view of the improvements in technology and how we can harness this to our advantage. the big picture and technology i will not delve into the macroeconomic indicators that you traditionally hear me speak of during your events. instead, for today, what i would like us to appreciate is that our constituents ’ needs are changing. and these changes are reflecting rather fundamental shifts. with 64 consecutive quarters of economic growth to - date, one should expect to find some structural improvements at the grassroots. indeed, latest data seem to confirm such an improvement. in the global findex