the human behavior side of markets. this should help us be more adept at finding the bis central bankers ’ speeches convergence points among policy intent, market expectations and the eventual outcomes of market behavior. the business environment today is certainly dynamic not only because of the usual evolution of the markets. instead, the dynamism of the markets is driven by a fundamental shift in the market architecture. while we all recognize the importance of an enabled environment for the business community, we cannot afford to concede the overall stability of financial markets. bsp initiatives on fs and regional integration this shift towards financial stability – both as the prudential norm and as it affects regional integration – requires a broader mindset from all of us. at the bangko sentral ng pilipinas, we have invested a lot towards the pursuit of financial stability. we created a high - level financial stability committee at the bsp and thereafter collaborated with the dof, btr, sec, ic and pdic to establish the financial stability coordination council. within this ambit, a formal definition of financial stability has been adopted and there is a continuing assessment of regional integration as a financial stability issue. parallel initiatives are meant to strengthen market governance and risk controls. we raised the standards on bank capital, clarified supervisory expectations on the management of risks and enhanced board and management governance protocols. we have actively advocated financial inclusion and consumer protection, crafting a national strategy in the former and establishing a formal bank framework for the latter. new guidelines on credit and operational risks have been issued, with the it risk framework issued several years ago, long before concerns regarding cyber security came about. our active participation in regional forums is with a clear view of pursuing financial stability. we welcome the challenge of being the incoming chair of the working committee on asean banking integration framework ( wc - abif ) as well as executing the abif learning roadmap which the bsp led in crafting. in addition, we make time to be engaged at the fsb regional consultative group for asia ( fsb - rcga ) and the emeap working group for banking supervision ( emeap - wgbs ). both of these are principally platforms for calibrating global reforms into the regional context. i would be remiss if i do not share with you our involvement in the best - practice process of the oecd international network for financial education ( oecd - infe ). it is clear to us that financial education can better anchor

amando m tetangco, jr : asean integration, change and collaboration speech by mr amando m tetangco, jr, governor of bangko sentral ng pilipinas ( bsp, the central bank of the philippines ), at the international conference and the asean university network for business and economics ’ ( aun - be ) 16th annual general meeting, quezon city, 14 july 2016. * * * introduction it is with great pleasure that i take part in celebrating the centennial year of business education in the philippines. there is no doubt that business education has had a significant contribution to our country and it is therefore most fitting that the business school of the university of the philippines is named after no less than a man whose imprint on the philippine economy is unquestionable. certainly, there are many highlights one can identify in a century of business education, particularly with a dynamic and colorful history such as ours. but i think these are best considered in the context of your conference discussions as a fuller perspective is warranted beyond what i can share in the few minutes of my remarks. instead of looking back then, allow me to focus on something that is already looming in the horizon. i refer to the integration of asean which is an initiative whose extent is comprehensive and whose ramifications are far reaching. certainly, this will reshape the landscape of business within asean and as such, call for a re - focusing of business education so that generations today and of the immediate future are well - positioned to operate in this market. stepping back : the road to integration – lessons learned however, as we gear up for the possible changes that regional integration could create in our markets moving forward, it would be instructive to step back and consider the learnings from our experience on this road to integration. a road that takes us back to december 1997. from the standpoint of the financial market, the lessons that we take heart are those arising from the 1997 asian financial crisis and the 2008 global financial crisis. there are many details, but let me just highlight two : 1 ) the 1997 afc reminded us that cross - currency and gapping risks can give rise to systemic dislocations ; and 2 ) the 2008 gfc taught us – painfully in hindsight – that no one was monitoring the unseen risks of interconnectedness in the economy. the gfc surfaced the “ not - so - apparent ” changes in the nature of macrofinancial linkages, including, among others : 1