establishment of digital banks that will largely offer financial products and services through digital platform or electronic channels with minimal reliance on physical touchpoints. the bsp is looking into the adoption of an open banking ecosystem which espouses consentdriven data portability, interoperability and collaborative partnerships among incumbent financial instiutions and new third party players. through open banking, third parties such as fintechs will be allowed to access financial information needed to develop innovative applications and services and provide account holders with greater financial options. since a digital ecosystem is heavily dependent on the transferability and use of electronic data, the bsp ’ s third priority is the setting of policies on data governance and the ethical use of data. 4 / 5 bis central bankers'speeches finally, an open architecture on the sale and provision of financial services is being designed to allow financial institutions to market and offer financial products of other financial institutions in their own app or website. this will support the propagation of digital financial products and broaden the range of institutions that can serve as touch points for offerings of different providers. lastly, the bsp is embracing the principles of sustainable development. the bsp launched the sustainable central banking program as part of our strategic objectives. this program aims to integrate environmentally responsible and sustainable policies and work practices within the bsp. the bsp will also be issuing enabling regulations on sustainability or environmental, social and governance ( esg ) - related guidelines in phases to encourage the financial industry to invest in activities that will promote climate - resilient, green, and sustainable growth. the bsp has initially issued the sustainable finance framework which sets forth high level principles on the integration of sustainability principles in the corporate and risk governance frameworks as well as in the business strategies and operations of banks. that said, bsp will continue to remain vigilant and monitor impact of relief measures on banking system as well as market conditions for any emerging risks to our outlook for both inflation and economic activity. we are committed to using our entire arsenal of instruments, in line with the provisions of our charter, in a timely manner to address the macroeconomic impact of the covid - 19 pandemic. we are actively working on laying the enabling framework that will encourage private sector participation in the attainment of a balanced and sustainable growth of the philippine economy. theodore roosevelt, who is regarded as one of the greatest us presidents, a prolific creative writer and a man of action, once said that “ great thoughts speak only to the thoughtful mind

on solid fundamentals that have been strengthened in recent years. these will serve us well in withstanding the “ pockets of vulnerability ” coming from the global financial markets. the key challenge will be to lock in the recent gains while steering the economy in riding out the current uncertainties, and then moving on to a higher and more sustainable growth path. the commitment to fiscal prudence and appropriate monetary policies and the intention to tackle policy challenges boldly through purposeful reforms should ensure that this path is sustained. this we hope to eventually translate to a reduction in poverty and improvement in the living standards of our people. i began these remarks by saying that a good strategy in playing a golf course for the first time is to know the “ lay of the land ”. but information about it is not sufficient to ensure that you win the game. to secure victory, you must play well. nay, you must play consistently and hopefully, better than others. all winners know that to have a consistently good golf swing, there are two important things to remember – 1. keep your eye on the ball, and, 2. follow through. don ’ t lose sight of your objective and make sure you execute a good follow through to deliver a successful outcome. do this throughout the game and you could guaranty a victory ( or at least a pleasing outcome ). 2006 was a good year, 2007 was an even better year. what do we foresee in 2008? i predict that we will continue to push ahead, despite significant headwinds. we have shored up an ample buffer in terms of our sound macro fundamentals and stable banking system that we are now more resilient and able to meet challenges. in the last few minutes, i hope i have been able to show you our roadmap for the new year and into the medium term. we hope to ride out this route together with you, confident that with solid economic fundamentals, we will prevail in our journey to a higher ground. thank you and good day.