hard about the direction one is taking. the traumatic 1997 asian foreign exchange crisis and then ten years later, the 2007 / 8 global financial crisis were valuable learning experiences that shaped our thinking on how we should approach bank supervision and promote overall financial stability. these defining moments have led us to embrace, champion, and implement wide - ranging financial reforms. the financial reform agenda is exceptionally challenging and complex … significant progress has been achieved but … more can still be done. it began with a long, painstaking, and painful post - 1997 crisis clean - up of the banking system. we followed through with decisive adoption of relevant global banking reforms particularly those advocated by the basel committee and other international standard setting bodies. running parallel to this are the implementation of regulations to raise the bar for the governance and risk management of banks, on one hand, and the risk - based approach that we are now employing to supervise them, on the other. bis central bankers ’ speeches our goal was behavioral change in how banks are run. this, while consciously and deliberately nurturing a more dynamic environment that encourages healthy competition, financial innovation, consumer protection, and financial inclusion. as a result, ladies and gentlemen, our banking system is robust. it supports expansionary business activities and consumption spending, effectively becoming a truly reliable pillar of economic growth. second, as captain, i must have an intimate understanding of the vessel and its equipment. our primary mandate, controlling inflation is often likened to operating a big ship. slight movements in the monetary policy rudder can cause big changes in economic course. we must be focused, precise and deliberate in our decisions. in 2002, the bsp adopted the inflation targeting framework. inflation targetting or it is an exhaustive policy framework where thoughtful econometric modelling and forecasting, grounded market surveillance, and sound judgement come together. and i am happy to report that since we ’ ve become more adept at it, we have also become more effective in keeping prices low and stable. economic growth is supported. income equality is better promoted. but the operating environment is evolving. so, again learning from the global financial crisis, the bsp enhanced its tool kit to include macroprudential measures to address, among others, any unintended financial stresses … that could potentially arise from changes in market risk perception... because of monetary policy actions or other related causes. macroprudential tools can be targetted towards areas for which traditional monetary policy tools are not suitable. third, i must delegate to,

of financial services, equipping them with know - how to appreciate which financial service suits them best, and creating an environment where they are essentially protected from unscrupulous elements. we believe that for economic development and progress to be meaningful, more must participate in and benefit from the journey. finally, a strong moral and internal compass is essential. it is difficult to find direction when one relies only on external aids. instead, one must listen closely to the dictates of his own conscience – his true north - doing his best in each endeavor. in its simplest form, this is how one genuinely moves forward : by listening to his inner compass, trusting in god, and doing what, in his mind, is his very best, never settling for less in the day - to - day. for me, as a young central bank statistician in the 1970s, this meant ensuring that each report submitted to my supervisor was accurate and timely. all the numbers had to add up. in the 1980s, this entailed carefully preparing correct and complete documents for the next external debt negotiation. it also required that as director of the research department, my interviews be faithful to our mandate. as deputy governor in the late 1990s and early 2000s, this translated to basing each policy recommendation only on meticulous academic research sensitive to market reactions. bis central bankers ’ speeches as governor, it demands attention to consistency and appropriateness of policies, and to consider paramount, the bsp ’ s mandate and public welfare. in closing, i recap what for me, are the core responsibilities at the helm. there must be commitment to the bsp ’ s true north - its mandates. there must be expert familiarity with the vessel and its equipment. delegation to, and trust in the ship ’ s officers is essential. the crew must be cared for and continously prepared for the journey. clear and active communication must be provided internally, and there must be strong coordination externally. there must be compliance with laws and regulations – to the standard of “ extraordinary diligence ”. to be meaningful, the journey must be inclusive. and most importantly, a strong moral and internal compass is essential. today, i am humbled and honored that the management association of the philippines ( map ) has recognized that under my watch, the bsp has stayed steady on its course. i am honored to join an illustrious roster of awardees that includes previous central bank governors, from whom i have learned a lot. my