we are also an archipelago and we need to bring banking to the people rather than expect people to adjust to banking. thus, it should come as no surprise that the bsp has pushed actively on our financial inclusion campaign. financial inclusion literally binds all our efforts because it creates a sustainable link between economic activity, financial products and services as well as the universal aspiration for a better future through economic growth and financial well - being. stronger onshore conditions provide better offshore links ladies and gentlemen, if you are wondering how inclusion, fintech and millennials relate to asean financial integration, the connection is not complicated. to be able to compete in the broader offshore market of asean, philippine banks need to establish what their comparative advantages are onshore. it would be difficult to imagine how a bank can actively engage in the potential of asean integration if it cannot be competitive in its own domestic market. this issue becomes even more significant in light of the passage in 2014 of legislation ( ra 10641 ) which fully liberalized our domestic banking system, allowing for 100 % foreign ownership of our banks. is the philippine banking system ready? we are clearly in a position of strength as an industry and, individually our banks have been enlarging their domestic footprint – constructing brick and mortar branches outside of the greater metropolis, creating “ other banking offices ”, which are scaled - down bank operations, and capitalizing on e - banking technology. while the biggest of the asean banks can indeed penetrate smaller jurisdictions, the diversity of asean suggests there are niche markets that can be realized, different needs that can be explored and pockets of expertise that can be harnessed. this is an important reality to bear in mind. and as you can appreciate, this “ distinctiveness ” of asean is the pressing motivation why our banks are currently focused on fortifying their bis central bankers ’ speeches domestic franchise in a variety of modes. we can, however, only surmise that this insular perspective will not be the norm for long. the peculiar diversity of asean ensures that banks across the 10 jurisdictions will have a role to play in the asean. this also ensures that the gains from regional banking integration will not only accrue to the biggest of asean banks. that said, competition creates fluidity and the possibility of external shocks is a constant. as we scan the horizon, the waters may appear to be relatively calm for us now, but there are shifts in the currents. we have to be able to adapt to the market flows and we cannot make the

part of the semiannual monetary policy report to the congress. these projections are actually quite interesting, as they represent the views of fed policymakers of the future evolution of the economy, conditional on what each policymaker views as the best path for future policy. two drawbacks of these projections as they now stand are that ( 1 ) they are sometimes not released for a number of weeks ( the time between the fomc meeting at which they are assembled and the chairman's testimony to the congress ), and the january projections cover only the remainder of the current year ( the july projections cover the remainder of the current year and all of the subsequent year ). i think it would be very useful to detach these projections from the monetary policy report and instead release them shortly after the meetings ( in january and july ) at which they are compiled. i would also suggest adding a second year of forecast to the january projection, to make it more parallel to the july projection as well as to the forecasts in the staff - prepared greenbook. by releasing the projections in a more timely manner, and by adding a year to the january projection, the fomc could provide quite in principle, the federal reserve could also publish its estimate of the long - run growth potential of the u. s. economy, for symmetry with its estimate of price stability. unfortunately, potential output growth tends to be variable and difficult to measure with precision. a deeper asymmetry arises from the fact that, unlike the long - run rate of inflation, the federal reserve cannot control, and thus cannot be held responsible for, the long - run economic growth rate. the monetary policy report is required by the congress under section 2b of the federal reserve act. the report is required to contain “ a discussion of the conduct of monetary policy and economic developments and prospects for the future... ” the projections may be interpreted as satisfying part of the requirement to provide the federal reserve ’ s view on prospects for the future. useful information to the public. in particular, the fomc projections would convey the policymakers'sense of the medium - term evolution of the economy, providing insight into both the fed's diagnosis of economic conditions and its policy objectives. ideally, the release of these projections also would provide occasions for governors and regional bank presidents, drawing on the expertise of their respective staffs, to convey their individual views on the prospects for the economy and the objectives of monetary policy. conclusion inflation targeting, at least