amando m tetangco, jr : philippine history wrought in gold speech by mr amando m tetangco, jr, governor of bangko sentral ng pilipinas ( bsp, the central bank of the philippines ), at the press launch of the asia society gold exhibit, new york city, 7 august 2015. * * * the bangko sentral ng pilipinas is pleased to be part of this pioneering exhibit of philippine pre - colonial gold in new york with the asia society and the ayala museum. for the first time, we will showcase in the united states the exquisite centuries - old gold ornaments crafted by our ancestors, some pieces of which are over 1, 000 years old. if we look at our history books, we find that one thousand years ago, the colonization of the americas by europeans had not even started. ladies and gentlemen. our pre - colonial collection provides insights into a glorious past we filipinos can be truly proud of : • first, that we had a distinct culture and art tradition that resulted from a fusion of indigenous and diverse foreign influences ; • second, that our ancestors had both the artistry and the technical ingenuity to craft these magnificent and complex gold pieces that remain much - admired by contemporary artisans ; and • third, that we had a flourishing economy with active domestic and international trade conducted through barter and gold payment. among the bsp gold pieces to be exhibited in new york is a “ piloncito ”, a gold nugget believed to be part of an early form of coinage system, whose value was determined by its weight. in addition, two “ kandits ” or royal gold belts will be on exhibit, one of which weighs more than one kilo. looking at these gold objects, we can conclude that before westerners came to our shores, we already had a thriving cosmopolitan trading center doing active trading with neighbouring kingdoms and islands. today, the philippines is on the international radar screen as one of the exciting emerging economies on the basis of its remarkable positive economic performance and growth potential. this is therefore the most opportune time for the world to know more about our country and our people through our history wrought in gold. thus, the exhibit presents an excellent opportunity to showcase our remarkable heritage in that part of the world. for your information, part of the bsp ’ s gold collection has been shown in europe twice : the first was in the 1990s and the second in 2013 at the musee du qu

##y risk management policy group ( aug. 2008 ) ; principles of conduct and best practice recommendations, financial services industry response to the market turmoil of 2007 – 2008 ( jul. 2008 ). bis central bankers ’ speeches 4. 1 principles for a risk control framework let us now consider four guiding principles around which the risk control framework should be built. 5 1. first, and most important, is the principle of sound governance : the voice of risk management must be independent and within the boardroom must be at least as powerful as that of the revenue - makers : good advice from risk managers is worthless if senior management do not listen or are not fully committed to controlling the risks generated by revenue - makers. clearly, this first principle is the base upon which the other principles stand. if this principle is not followed, then the impact of the other principles is, to all intents and purposes, nullified. 2. second, there needs to be a clear understanding of the risk inherent in the business model adopted by the institution. the risk control framework needs to give a bird ’ s eye view of the risks associated with the high - level overarching strategy, individual business lines and specific portfolios. even the risks associated with the off - balance sheet activities of the institution cannot be overlooked. let me illustrate the importance of each of these considerations by drawing on some of the lessons of the crisis which i briefly mentioned earlier : the crisis highlighted the vulnerability of some business models, in particular those models which relied heavily on wholesale markets for funding. it is clear that the liquidity risks associated with such a model were not properly assessed or understood. consequently sufficient contingency measures, such as adequate liquidity reserves or alternative sources of funding, were not in place to cope with the evaporation of liquidity in stressed conditions. therefore it is essential that the risk framework can properly assess the risks associated with the high - level business model and that steps are taken to mitigate these risks. the crisis showed that many institutions did not properly understand the risks associated with the complex instruments which they held in their portfolios and that there was a blind reliance on the trading strategies or the assessments of others, for example so - called “ smart ” market participants or rating agencies. therefore a robust risk framework must be able to drill down to a granular level so that the risk associated with individual portfolios can be analysed. the crisis revealed that the activities of lightly regulated entities were not as de - linked from their origin