the penalty that may be imposed for reserve deficiencies was relaxed and subjected to a reduced maximum limit until 31 march 2021. also, the notification requirements related to changes in banking days and hours and temporary closure of bank units and supervised financial institutions offices / service units and submission of documentary requirements for type c licenses were further relaxed. moving forward, we reaffirm our continued partnership with ctb in the pursuit of remaining financial sector reforms. 1 / 3 bis central bankers'speeches our ‘ test and learn ’ approach or regulatory sandbox remains useful in dealing with increasing digital financial innovations in the market. one of the significant outcome of our ‘ test and learn ’ approach that has graduated to full implementation involved a pioneering rural bank that engaged a cloud service provider for its core banking system. indeed, one critical transformation already taking place in the banking industry is the move towards going “ cloud - based ” as more than 20 financial institutions have transitioned towards hosting their core banking solutions in the cloud. however, there has been an uneven take up of cloud banking among the industry as rural banks represent a disproportionately larger share of cloud adopters. this is something that we hope to understand more through discussions with the industry. for thrift banks, this should mean two things. first, shifting to the cloud must be seen as an opportunity, as even rural banks have maximized the benefits of scalability of financial services, from mobile and electronic banking to near field communication ( nfc ) payments. second, thrift banks must embrace the change of mindset from a “ brick and mortar ” thinking to embracing the promise of digital transformation in providing crucial banking services to its clients. moreover, smaller thrift banks can take advantage of these available digital technology to lower operational costs. the opportunities are limitless, but risks, business synergies and contribution to growth have to be carefully considered. the covid - 19 pandemic has also accelerated the digitalization of financial services to support resilience. innovative solutions could support the reopening of the economy while minimizing resurgence of the virus. widely reliable and affordable access to internet will be critical to ensure business continuity under the new normal. the shift to e - commerce, digital financial services, digital public service and social protection delivery which started during the lockdown will likely to continue even after the relaxation of lockdowns. under its digital payments transformation roadmap, the bsp aims to shift at least 50 percent of retail payment transactions to digital, and

it was because of this that led the bsp and the monetary board here to the new clark city. it is worth noting that the bsp follows a very rigorous set of criteria in selecting sites for its facilities. these standards — which include everything from lot configuration, site conditions, to infrastructural support — are intended to ensure that the bsp ’ s operations are suitably located. after an exhaustive canvass of sites north and south of metro manila, it is crystal clear that the new clark city is the only one that met the requirements of the bsp — with flying colors, might i add. in my previous stint as budget secretary, i was fortunate to have a hand in crafting and implementing the “ build, build, build ” program of the government, which is aimed to usher in a “ golden age of infrastructure ” in the philippines. one of the key elements of that program is the establishment of a new government center on this very location. under the leadership of bcda president and ceo vince dizon, the new clark city is rapidly transforming itself to a resilient metropolis that will drive growth momentum in “ paspas capas ” 1, tarlac, as well as in other nearby provinces in central and northern luzon. 1 / 2 bis central bankers'speeches with the national government administrative center situated just around the corner, as well as the continuing influx of government institutions setting up shop within the complex, the new clark city is also clearly geared towards responsive governance and public service. today, as governor of the bangko sentral, i ’ m gretly honored to lay the groundwork for bringing one of the country ’ s most trusted government institutions to this most vibrant growth corridor. in the memorandum of understanding which we are signing today, the bsp and bcda agree to work hand - in - hand to facilitate the relocation of the bsp security plant to the new clark city, on the plot of land just outside of this tent. once the details of relocation are threshed out, bsp and bcda will formalize its respective commitments under a new memorandum of agreement, which will serve as the implementing document for this purpose. from there, we will work unceasingly to complete the development within the shortest timeframe possible, at the highest level of quality and workmanship. we will explore the various modes of procurement available in order to leverage local and international expertise in the design and construction of the new spc. speaking