to affirm that our banking system, in all its vital components – rural and cooperative banks, thrift banks, and commercial and universal banks, is in much better shape today than it was during the last crisis we faced. and i can tell you, the monetary board and the rest of the bangko sentral ng pilipinas family remain confident that our banking system can work through these challenges. i assure you, this is not meant to be a self - acclamation. rather, it is our tribute to the collective efforts we have invested in our shared future. as a community of stakeholders, it is this common future that requires of us.. shared responsibilities to take on challenges together in order to grow and gain as one. i refer specifically to the bankers association of the philippines, the chamber of thrift banks and the rural bankers association of the philippines. the bangko sentral ng pilipinas thanks you and salutes your efforts in sustaining economic activities not only in urban centers but also in the countryside through responsible and responsive banking. ladies and gentlemen, let us give a round of applause to the philippine banking sector. there is a saying that it is okay to build sand castles in the sky for as long as our feet are well planted on the ground. what is the context, what do i mean by this? there are three points i wish to make. first, the best strategy is always to move forward as one. this is not an inspirational punch line but the hard reality of market dynamics. we appreciate that banks are inherently business concerns, but protecting the institutional bottom line requires nurturing sustainable relationships in a thriving environment. what is not too obvious is that the financial system as a whole moves forward only when we work together. ultimately, it is this stability from working together that gets us through the business cycles, even as this starts from a position of competing interests. as competitive elements within one system, we can always agree to disagree but we cannot fall into the trap of disagreeing to agree. second, it is critical that any lingering risk aversion from whatever source does not spill over into our ability to provide needed financial services for our real economy. global conditions will be challenging. but in the same breath, let us not allow fears of off - shore conditions to pre - judge our on - shore actions, when and where such links are not warranted. if we are to consolidate our position of relative strength, we need to seize opportunities when they present themselves, while

amando m tetangco, jr : sustaining partnerships in a year of challenges speech by mr amando m tetangco, jr, governor of the central bank of the philippines ( bangko sentral ng pilipinas ), at the annual reception for the banking community, manila, 16 january 2009. * * * members of the judicial, legislative, and executive branches of government ; leaders of the philippine banking community ; special guests from the diplomatic community, the private sector, the academe, and the media ; fellow central bankers ; ladies and gentlemen, a pleasant good evening to all of you. on behalf of the monetary board, i thank you all for taking the time to join us tonight for our traditional reception for the banking community. that we are celebrating 60 years of central banking in the philippines in 2009, makes this reception doubly meaningful. we are happy therefore that we have with us tonight former deputy governors and members of the monetary board ; two former governors under the central bank of the philippines – governor jaime laya and governor jose cuisia, jr. ; and one former governor of the bangko sentral ng pilipinas – governor gabriel singson. ladies and gentlemen, let us acknowledge all central bankers – past and present – on this 60 - year milestone with a round of applause. we have 60 years of central banking behind us and we move forward to the future with confidence having learned many lessons along the way. we therefore look forward to more opportunities for us to shape a better future for ourselves, our families, our communities, and our country through sound and responsive monetary and banking policies. take the year just past, for instance. no doubt about it, 2008 was challenging given the difficulties we had to face. but it was also the same difficulties that allowed us to confirm.. that our collective reform efforts have put our financial system in better shape. indeed the irony of financial markets is that crises invariably occur despite the best intentions ; yet, it is in facing the next challenge in relative strength that we can truly say we have learned from the past. ladies and gentlemen, we are fully cognizant of the difficulties that the current global financial crisis has created and the spillover effects that it would certainly generate. our continuing efforts to clean up our domestic banking system and root out malpractices that particularly victimize the most vulnerable customers and our financial safety nets may also be creating short - term anxiety alongside global turmoil. but i stand before you tonight