spv law ; improve the risk management process through effective enforcement of risk - based supervision ; promote better governance and market discipline ; and establish an appropriate capital adequacy framework for banks. at this point, let me give you an overview of where we are now in the reform process and what still remains to be done. ongoing asset cleanup the asset cleanup process remains a priority. here, we expect banks to unload more bad assets under the amended spv law. the bsp has so far approved certificates of eligibility ( coe ) amounting to p31. 7 billion spvrelated transactions under phase ii of the amended spv law. combined with the p97 billion worth of npas disposed under phase i, this brings the total amount of npas sold to roughly p128. 7 billion. we expect this to reach up to p200 billion. full implementation of risk - based supervision we are also fostering a strengthened environment through full implementation of consolidated and risk - based supervision. to keep pace with the increasing sophistication and complexity of the financial environment, we have directed our policy thrust toward acceptable risk management practices that enable financial industry participants to better assess and manage risks without unduly hampering the ability to innovate. in effect, we have assumed a more liberal approach to bank supervision in the sense that we do not instruct banks to avoid risks that seem too high, which is the way traditional bank supervision is done. instead, the approach being used is to favor assessment of the quality of risk management practices by giving banks greater flexibility to respond to changing opportunities and allowing them to take risks so long as they demonstrate the ability to manage and price for those risks. this is being complemented with enhanced regulations on risk management as a way of developing appropriate standards suited to banks ’ risk - taking activities. more recently, we have issued general guidelines on supervision by risk, setting forth the broad expectations of the bsp with respect to the conduct of risk management by financial institutions under its jurisdiction. we followed this up with the issuance of specific guidelines on technology risk management, one of many envisaged to cover strategic areas, which is aimed at ensuring effective management of technology - related risk by financial institutions. we have since come up with specific guidelines on market risk management and liquidity risk management, which set forth bsp ’ s expectations on the management of these key risks by banks. another related issuance of the bsp is the strengthening of the prompt correct

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