. we recognize that the work agenda is complex and far reaching. key reform initiatives that we have identified include basel 3, corporate governance, consumer protection and financial education, financial market infrastructure bis central bankers ’ speeches and crisis preparedness. these initiatives are on our radar screen today in the context of unifying the prudential architecture of financial stability. none of these is trivial, each one of these requires a keen eye for details and a broader appreciation of how each interconnects with another, and each is essential in the pro - active management of any underlying pressure points that may be brewing. let me also say that we do not underestimate how weaknesses in the west will leave their imprints upon asia, upon us. although better off than other jurisdictions, economies in our region are also experiencing an economic slowdown. coupled with the deleveraging in europe, asia will feel some of the repercussions, either from re - leveraging, capital inflows and / or stronger local currencies. these are not insignificant macroeconomic policy issues and they certainly will be formidable macro - prudential policy concerns. for us there is that added issue of domestic liquidity that is building up and looking for suitable outlets. some say it ’ s a positive problem that is preferable to the case of liquidity drying up. that may be true, but to central bankers, it is still a concern, positive or otherwise. in retrospect, we believe that the philippine banking system is in a position of strength. such strength has been achieved through the reforms that we have invested in the past and whose benefits have come to fruition. moving forward, we expect to further evolve with the needs of the public at large as well as the institutions that we oversee. ladies and gentlemen, let me reiterate – there is a role for the market in this framework. bsp does not expect to do the work alone. we stand not only as your banking regulator or monetary policy authority. we are your partner, and as in any partnership, we expect the different stakeholders to bear their proportionate load. whether it is in managing financial risks or in exemplifying acceptable conduct in market operations, the market has a definitive role. stability is easier to achieve if we consider the bigger picture and not be shortsighted by our own bottom lines. capital market development is certainly a shared responsibility because it is a collective gain. and providing for an inclusive financial market, with appropriate support

for financial consumers, is itself a clear winning bet for tomorrow. together, we have taken what was perennially a difficult financial market situation in the late 90s into an environment that has withstood global shocks. ladies and gentlemen, today, our market is on every investor ’ s radar screen. i ask all of you : where do you want this market to be as we hold the 3rd, 4th and 5th philippine international banking conference and perhaps the 1st, 2nd and 3rd asian banking summit? i have every reason to believe that we all share the same answers. let us then do our part as we lift the philippine banking system further forward as a responsive platform for the needs of the filipino in the asian, if not global, platform. thank you very much. bis central bankers ’ speeches