idea of the overall impact of these measures, it suffices to say that the minimum cet1 requirement of 2 % under the previous legislation could be, on average, around 1 % if the new requirements are applied. therefore, effectively, the minimum cet1 requirement, increases by around six percentage points in relation to risk - weighted assets. and this aside from the supplementary requirements which may be made of each institution based on its specific risk profile under the so - called pillar 2 of the capital accord. in this way, credit institutions will have more and better quality capital to withstand the losses which might be caused by their activity. nevertheless, as we have seen in the crisis, the availability of a large volume of capital does not per se guarantee an institution ’ s resilience in the face of sufficiently adverse shocks. that justifies the introduction of further restrictions, such as those setting a maximum leverage ratio and minimum liquidity, which are currently subject to an observation period that will culminate in them being definitively parameterised and incorporated into the new regulatory requirements. finally, the new legislation includes macroprudential tools which seek to complement the requirements aimed at strengthening each institution's solvency with obligations directed at protecting the system as a whole. two measures stand out among the macroprudential measures envisaged : those seeking to reduce the procyclicality of microprudential regulation by introducing a countercyclical capital buffer, and those aimed at mitigating the systemic effects of the possible insolvency of individual banks. the second set of measures includes an additional capital buffer for systemically important banks, which is complemented by supplementary requirements for those institutions with the capacity to affect the global financial system. further, the new legislation includes the adoption of additional macroprudential controls ( in the form of capital buffers, changes in risk weightings, etc. ) for banks on the basis of their exposure to specific sectors where marked imbalances can be identified. undoubtedly, these regulatory changes will exert a noticeable positive effect on the capacity of banks to withstand periods of stress and that will result in less frequent and milder crises which, furthermore, should entail lower costs for the public. that said, the new prudential legislation admittedly entails considerable challenges as to its implementation, and its introduction will restrict the capacity of banks to run risks. for this reason, it is appropriate, especially taking into account the relatively weak economic activity in

. the widespread use of mobile phones can provide for a broader reach of these financial services. additionally, rapid development of peer - to - peer ( p2p ) lending could complement the role performed by traditional finance. provided such lending platforms are properly managed and regulated, this could lead to a more resilient network and positively contribute to the diversification of risk across the financial system. bsp ’ s response to fintech on its part, the bsp has established a regulatory environment that fosters innovations while ensuring that risks are effectively managed. it has continuously monitored fintech developments. it has developed a balanced regulatory approach anchored on three pillars : 1 ) risk - based and proportionate regulation ; 2 ) active multi - stakeholder collaboration ; and 3 ) consumer protection. these principles are pragmatically implemented through the bsp ’ s flexible “ test and learn ” approach to financial innovations. this is also referred to as “ regulatory sandbox ” which provides an opportunity for innovators to participate in the financial system as players in their own right or as partners of more traditional players like banks. this approach has been proven useful since it enables the bsp to strike the right balance between innovation and safety while providing economic benefits to the banking public. the bsp also continues its market surveillance on crowd funding activities in the country to determine if regulatory action is warranted. we are likewise regulating transactions in digital currencies. on 9 february 2017, we issued a circular that established a regulatory framework for virtual currency ( vc ) - based payments and remittance transactions. under this framework, vc exchanges are classified as remittance and transfer companies ( rtcs ). as such, they are subject to the basic requirements for rtcs. hence, this promotes a level regulatory playing field for financial service providers performing similar services. we have launched a major initiative called the national retail payment system or the nrps, a policy and regulatory framework for institutionalizing retail digital payments in the country. our goal is to drive the usage of electronic payments from around 1 percent to at least 20 percent by 2 / 3 bis central bankers'speeches 2020. we are working hand - in - hand with the industry to realize this. already we launched pesonet last november 2017. we will soon launch instapay on april 23, 2018. both pesonet and instapay are inter - operable payment systems that enable safe, efficient and affordable account - to - account payments transactions between and among businesses