late december and is currently being traded in the range of 117 - 120 yen to the u. s. dollar. with regard to corporate finance, private banks continue to be more active in extending loans, mainly to blue - chip companies, while carefully evaluating the credit risks involved. there seem to be no significant changes in the fund - raising conditions of firms in the markets for such instruments as corporate bonds and cp. on the other hand, the improvement in economic activities has not stimulated corporate demand for external funds, since firms ’ cash flow is at a high level in parallel with the recovery in profits. moreover, firms continue to reduce their debts as part of their balance - sheet restructuring measures. as a result, credit demand in the private sector has continued to be basically stagnant. in view of this, the underlying tone of private banks ’ lending remains sluggish, although the expansion in the year - on - year decline is ceasing. meanwhile, the amount outstanding of corporate bonds issued is slightly above the previous year ’ s level. the amount outstanding of cp issued was at a high level as the year - end approached. money stock ( m2 + cds ) continues to grow at around 2 percent on a year - on - year basis. as for funding costs for firms, short - term funding rates basically remain flat but long - term funding rates seem to be declining reflecting the developments in market interest rates. in this financial environment, the lending attitude of financial institutions and corporate financing conditions remain easy. however, the effects of the decline in stock prices on the fund - raising conditions of firms need to be carefully monitored.

##cial surveillance capability. the bsp is watchful of shifts in market sentiment along with trends in commodity prices and other inflation drivers, refreshing its liquidity forecasting and inflation models so they are in tune with evolving impulses. in the spirit of “ continuity plus plus, ” no significant deviation from previous monetary policy approach is anticipated. returning to the community as the country experiences more economic success, it becomes imperative to allow a greater number of our fellow filipinos to enjoy the gains. financial inclusion translates to allowing more of our countrymen to save and borrow for productive uses … avail of investment and insurance products and send and receive payments securely and efficiently. we believe this is the only way for economic growth to be truly meaningful. filipinos from the grassroots must be given usage and access to financial services, and be provided with financial literacy and education empowering them to make informed financial decisions to better their lives and that of their families. rcm has, through the years, made positive and lasting change in philippine communities. we in the bsp will be glad to partner with you in the transformation of our country, perhaps in launching public information campaigns and other endeavors. imagine even our lowest socio - economic group as a financially literate populace! this is an exciting prospect that we hope you, our partners in business and industry, would support the bsp in achieving. on the bsp ’ s part, we have, among other initiatives, implemented the national strategy for financial inclusion to make the financial system accessible and responsive to the needs of the entire population. we are also working with other government agencies for the implementation of a national id system. with this system, disenfranchisement will be a thing of the past, with the number of “ unbanked ” citizens shrinking faster and with more certainty. individual biometric identification will give each one a voice to be recognized, to be heard and to participate in economic growth and development. we are also continuously creating a more enabling regulatory environment for the development of fin - tech and digital finance. the digitalization of finance is essential to achieve significant inroads against financial exclusion and payments inefficiency. soon, financial consumers and investors will be able to make more informed business decisions choosing from a longer, fresher and more innovative menu of available financial products and services. we adopted the national retail payments system ( nrps ), a flagship program for digital finance. with this, we hope to transition from a cash - heavy economy, where 99 percent