economic trends, and help us assess our vulnerability to external shocks. and it is our collaboration with banks that help us operate an efficient payments and settlements system that keep our financial system stable and facilitates the safe transfer of billions of remittances from overseas filipinos across the globe. but more than providing valuable support, our partners give us feedback on the effectiveness of our policy actions. this is an important facet of our partnership. thus, the bsp invests resources in engaging our stakeholders in policy formulation and regular consultation. we know that if we do not listen, we can lose our grounding and in the process, our policy actions may lose potency. it is important therefore that we sustain and continue to nurture our partnership. we count on this as one of the anchors that provide guidance and credibility to our decisions. bis central bankers ’ speeches moreover, our common vision of making lives better through our partnership have led us to cooperate in pushing for advocacies that matter. for instance, our campaign to protect our people against counterfeit banknotes led us to introduce new generation banknotes that have many new security features. we thank all of you therefore for helping spread information on these new security features and the demonitization of our old - design banknotes. as scheduled, our people have until december this year to exchange old - design banknotes with banks or the bsp. by 2017, old - design banknotes will no longer be accepted by banks ; an exception to this rule are overseas filipinos who have up to next year to exchange their old - design banknotes. in particular we thank the banks, malls, stores, public offices and transport groups for helping us spread the message of demonitization and the security features of our new banknotes across the country. another advocacy we are giving priority to is the development of an inclusive financial system. in particular, we have leveraged on our initial gains in microfinance and financial inclusion to develop and implement the national strategy for financial inclusion in partnership with other government agencies, the banks, the private sector, the academe and the ngo community. we are heartened by our continuing progress in scaling up our efforts to bring more filipinos into the financial mainstream – where sound financial management is developed, where the cost of money is more affordable, where savings are encouraged and protected, and where investment products provide opportunities for growth. in other words, ladies and gentlemen, through our collaboration, we have become agents of stability and of

is both multilayered and dispersed. it involves complex networks of state, suprastate, substate, and private - sector actors. the challenge ahead is certainly to coordinate this network more efficiently. let me give you a few examples. the imf due to its near universal membership of currently 184 countries is probably the only true international organization with legitimacy. its mandate encompasses the promotion of macroeconomic stability and sustained noninflationary growth among its members. the fund contributes to good governance through its policy advice, technical assistance, and program conditionality. it does so within its areas of expertise which covers the effective and transparent management of public resources, and the maintenance of a stable, economic, regulatory and legal environment. the fund took a leading role in the management of the third world debt crisis in the 1980s and the emerging market financial crises of the 1990s. since 1996 the imf has promoted data standards - the sdds that aim to make information on and for financial markets more reliable and accessible. recently the fund ’ s international monetary and financial committee ( imfc ) has served as an important forum for intergovernmental consultations regarding the international financial architecture, drawing upon discussions in the fsf and the g20. at present, the imfc is for example engaged in drawing up the fundaments for a sovereign debt restructuring mechanism ( sdrm ) which should allow for a better resolution of external sovereign debt crises. central bank governors of the group of ten ( g10 ) advanced industrial countries have met regularly at basle at the bis since 1962 to discuss monetary and financial matters of mutual concern. unfortunately austria is not a direct member of this group, but we surely have profited from their initiatives. most important for international financial governance has been the group of seven ( g7 ) summits, held annually since 1975. from time to time, g7 leaders have given orientation for important policy initiatives. the g10 and the g7 have from time to time set up working parties to explore specific issues related to global finance. the best - known example is the basle committee on banking supervision ( bcbs ), formed as a standing group of the g10 in 1975. most significantly, the bcbs has formulated the basle capital accord, a framework first issued in 1988 for assessing the capital position of international banks, which is now under revision ( basle ii ), and core principles for effective banking supervision, published in 1997. on a more specific problem, the g7