delisle worrell : the barbados ibfs sector and the efficiency of international commerce lecture by dr delisle worrell, governor of the central bank of barbados, at the carleton university, ottawa, 17 september 2015. * * * small international business and financial services ( ibfs ) centres like liechtenstein, guernsey, the caymans and barbados – to take a random selection – have an enduring place in international commerce, because they serve to make the international system more efficient. through the services that international companies locate in these centres, companies are able to offer products and services to the global market more cost effectively than they would otherwise be able to do. it is because of this economic reason that the foremost centres have proven so resilient, in the face of repeated waves of misrepresentation. the truth, as i will show in this presentation, is that international firms that use subsidiaries in ibfs centres to locate appropriate aspects of their global operations, are more competitive than those that do not. the sources of ibfs competitiveness vary by country, and include the expertise available in the centre, its global interconnectedness, the local penetration of information and communications technology ( ict ), the quality of life available in the centre, the quality of infrastructure, and many others. importantly, most centres will offer local expertise that is on par with london, new york and singapore, at significantly lower costs than would be the case for the large global financial centres. in this essay we cite evidence of barbados ’ competitive standing in international financial markets. how ibfs centres contribute to global efficiency the main factors which make international firms that use well regulated, well networked ibfs centres more efficient than the competition include : • such centres may reduce market frictions and information costs to the international firms whose subsidiaries they host ; • they are able to offer internationally comparable skills at lower wages and other costs ; and • they offer a corporate tax regime which provides for lower taxes on value added in the export of goods and services. because of these factors the ibfs centre is able to offer benefits to producers and consumers of ibfs goods and services, while at the same time providing an economic benefit to the host country. the investing company is able to produce the services located in the ibfs centre for sale in third countries at significantly lower cost, with no sacrifice in quality. the third country receiving the finance, product and / or service is able to access the output at a more attractive price. the benefit to the ibfs

by establishing and maintaining consistent engagement with our partners, the bsp is able to capture the sentiment of its stakeholders, which helps us formulate and calibrate effective monetary policies. through the years, your support has become increasingly more important in our various initiatives and advocacies directed toward the fulfillment of our mandates. for instance, in july 2017, the bsp launched the bsp e - survey portal that features an online questionnaire, database, and an application for data maintenance and consolidation system. in 2018, the portal ’ s registered users increased to 1, 706 from the 860 registered users in 2017. and, as of end - june of this year, the number of registered users rose to 2019. this is one of the many endeavors of the bsp that highlight the importance of the information support you provide us to aid in our policy formulation. the bsp has, likewise, responded to the call of digitization by pioneering the national retail payment system ( nrps ). the nrps is a policy and regulatory framework to establish a safe, efficient and reliable retail payment system in the philippines. with this initiative, digital payments have become more accessible to every filipino. we, at the bsp, cannot stress enough how you have taken a pivotal role in helping the financial sector develop in this age of fast - paced technological advancement and integration. today, as we celebrate our rewarding partnership, we must also reflect on the motivations behind it. this year ’ s theme, “ one team one goal : resilient partnership towards inclusive economic growth, ” highlights the fact that the bsp cannot do it alone. with your support, the bsp is able to continuously craft policies that are appropriate for the nation. ladies and gentlemen, by working as a team, we will be more than ready to face the challenges head on and deliver on our common goal of achieving sustainable and inclusive economic growth and development in the philippines. 2 / 3 bis central bankers'speeches thank you and congratulations to all our outstanding partners! 3 / 3 bis central bankers'speeches