amando m tetangco, jr : continuity in a time of change speech by mr amando m tetangco, jr, governor of the central bank of the philippines, at the 12th anniversary of the bsp, manila, 4 july 2005. * * * introduction mb member valdepenas, mbm boncan, mbm amatong, mbm villafuerte, outgoing mbms mr. alindogan and mr. salazar, our esteemed former central bank governors, our friends from the banking community and the business sector, distinguished guests, my family, our friends from media, my co - workers in the bsp, m. o., spc and our regional offices and branches, ladies and gentlemen, good afternoon. today we celebrate the twelfth year of the bangko sentral ng pilipinas and i wish everyone a happy anniversary! this celebration is particularly significant for us. governor buenaventura, mbms quintos, salazar and alindogan are closing six years of outstanding work in central banking today. we salute them for their very important contributions to the relentless pursuit of the goals and objectives of this institution. i have been fortunate to participate in and personally witness the major changes made to advance monetary policy making and banking supervision during their watch. they, together with the mbms who are staying behind, are one of a kind, a bold bunch of policymakers who were alien to the fear factor in introducing innovations to make the financial system and the bsp as an institution attuned to the new standards and requirements of a fast changing world. governor buenaventura cannot join us in today ’ s celebration, but the bsp is so close to his heart that he sent his taped message, so that even in spirit we shall all be complete. as he finishes his term, he leaves a legacy that, while towering, is at the same time edifying and inspiring for us to continue the tradition of excellence and hard work in the bsp. as we bid farewell to our outgoing mbms, we also extend a warm welcome to our incoming board members : mrs. amatong and mrs. villafuerte who are not new to the monetary board. we all look forward to working with them in the period ahead. this afternoon, i would like to share with you my thoughts about the two main pillars of central banking : monetary policy and banking supervision. i will also identify the challenges faced by a modern central bank and what they

our regulatory issuances allowed a wider range, as well as expanded physical and virtual reach, of financial services. for example, we now allow third party retail outlets to function as cash agents as well as the implementation of reduced know - your - customer ( kyc ) rules for certain low - risk accounts and the use of technology to comply with kyc requirements. likewise, the bsp supports efforts to build financial infrastructure and viable ecosystems to facilitate a more equitable allocation of credit. earlier, we talked about the government ’ s thrust for infrastructure. part of bsp finfrastructure agenda is collaborating with other government agencies and industry stakeholders to deepen the local currency debt market, given its vital role in complementing bank lending to support longterm financing requirements of corporates and the government, particularly for its “ build, build, build ” program. as early as june last year, the bsp has started the groundwork for project financing under circular no. 914. last month, the monetary board approved amendments to streamline requirements of issuance of bonds and commercial papers by banks and quasi - banks ( qbs ), thereby providing them more flexibility in tapping capital markets as alternative funding source. these amendments, as embodied in circular no. 975, include the removal of required eligible collaterals. at the same time, just this month, we issued circular no. 976, which provide enhancements to the prudential reporting requirements over project finance exposures. it is important to sharpen bsp ’ s assessment of banks ’ exposure to project finance, given that demand is expected to pick up and gain traction as the country moves towards its infrastructure goals. complementing capital market development initiatives, we are also pursuing foreign exchange ( fx ) market reforms to deepen and increase efficiency of the fx market, and reduce cost of doing business. building finfrastucture with fintech technological development has significantly changed the business of banking and finance. financial transactions can conveniently be made on the move, in the comfort of one ’ s home, using a smart phone. there is a shorter turnaround time for financial transactions. nowadays, retail financial services are further being digitized via mobile wallets, payment applications, robo - advisors, equity crowd - funding platforms for access to private and alternative investment opportunities, and online lending platforms. these breakthroughs are revolutionalizing the financial landscape. sound finfrastructure is needed to support it. the bsp is actively