more responsive to inflation pressures, particularly during periods of unusual and large supply shocks. so far, the bsp managed to anchor inflation expectations and thus, effectively control second - round effects. through our inflation - targeting framework, headline inflation has gone down to 3. 9 percent as of december 2023, from a high of 8. 7 percent in january 2023. second, we will strengthen the way we conduct systemic risk oversight. you saw what happened in march 2023 with silicon valley bank and credit suisse. we don't want this to happen to us. and for now, the banking system remains healthy, characterized by strong balance sheets, profitable operations, and sound performance indicators. the banking system likewise stood firm and proved its true resilience through the pandemic and through the international disruptions of march 2023. third, the bsp financial stability mandates also carry with it the responsibility to deepen our capital markets. this is meant to diversify the sources of funds in our financial system so that our businesses and our investments do not have to rely entirely on the banking system in case there is a credit crunch. fourth, we will strive to make the bsp sustainability initiative more meaningful by infusing it with an inclusion perspective. we want to ensure that the entire financial system supports an inclusive adaptation program so that the burden of transition does not fall on the most vulnerable segments of our society. parallel to this, the bsp is harnessing digital technology to empower sectors which have been traditionally underbanked. we think our open financial framework will unlock opportunities for consumers. 2 / 3 bis - central bankers'speeches the bsp has been relentless in bringing our paleng - qr ph plus program to various parts of the country, giving market vendors, public transport drivers, and other merchants a more convenient way of accepting e - payments for their transactions. conclusion so, the bsp has accomplished a lot in the last 75 years. none of these would have happened without the help of various stakeholders present here today. to the past members of the bsp monetary board and bsp officers, we salute you for helping shape the bsp into the world - class organization that it is today. meanwhile, i hope that through the initiatives which we will put into play in collaboration with the banking industry, the bsp will be able to contribute to a brighter and better future for our countrymen. to officially cap this evening, let me now call on my fellow monetary board members (

the story is simple : there is no substitute for conscientious preparation and hard work to guard ourselves against the big bad wolf. analogous to the construction of the brick house in the story, the philippine economy was built through the pursuit of wide - ranging, and at times difficult, policy reforms over several years which allowed the economy to endure several big bad crises. building the house of bricks 1. the output expansion we have realized for the past two decades has been built on purposeful structural reforms supported by disciplined macroeconomic policymaking. this paved the way for the economy to increase investments, pursue fiscal consolidation and reduce debt, improve labor dynamics, and enhance competitiveness, all of which contributed to the philippines becoming one of the fastest growing economies in emerging asia. 2. our efforts toward maintaining price and financial stability also bore fruits. last year marked the fifth straight year that the inflation target has been achieved. inflation in the first nine months of 2014 at 4. 4 percent is also well within the government ’ s full year target of 3 – 5 percent. on the other hand, amid bouts of financial market volatilities, ample liquidity in the system granted domestic borrowers with continued access to domestic financing to support economic activities. the 10 - year us treasury traded at 2. 137 pct. on 15 october 2014. bis central bankers ’ speeches 3. the country ’ s current account remains in surplus, supported by sustained increase in overseas filipinos ’ ( ofs ) remittances, business process outsourcing ( bpo ) revenues, as well as tourism receipts. our foreign exchange ( fx ) reserves are adequate to meet the country ’ s fx liquidity requirements. 4. sustained structural reforms have kept our banking system in good shape, demonstrated by improved quality of banks ’ assets and loan portfolios, profitability metrics as well as adequacy of capital. the bsp is also on track with the requirements under the asean financial integration framework ( afif ) with the recent approval of the amendments to the foreign bank entry liberalization law. 5. meanwhile, in support of the national government ’ s ( ng ) overarching goal of achieving inclusive growth, the bsp ardently pursues the implementation of its financial inclusion program. we are further inspired with the increase in the number of participants in the bsp ’ s programs on microfinance, credit surety fund, and economic and financial learning. the potential big bad wolves the philippine economy also faces potential