convergence between banking and pension planning. several aspects stand out. first, both reinforce the value of saving on a regular basis. after all, preparing for life after retirement is the prudent thing to do. the ideal situation is to have sufficient funding of our own after we retire. in the absence of private capacity, it is essential for countries to have effective public pension services. this underscores the importance of a strong sss. without a doubt, pensions are important. they epitomize the value of preparing for your future – a validation of the significance of our lifelong career. second, each time sss extends benefits to its members, they are reminded of the value of regularly setting aside part of their income for the rainy days. this is important for the banking industry as well. it is the accumulated savings of our people that allow our banks to lend for economic activities that create and keep jobs. bis central bankers ’ speeches third, banks are essential channels for the collection of sss premiums as well as for the distribution of the benefits to its members and their beneficiaries. this synergy between the sss and our banking system is bound to continue moving forward. fourth, is the importance of the capital market to both the banking sector and to the sss. from the accumulated contributions of its members as well as earnings derived from its fund management, sss has become a significant market player. i understand that as of july this year, 38 percent of the total investments of sss is in government securities, 26 percent in equities, and 5 percent in corporate notes and bonds. 1 this portfolio structure of the sss is important because you accumulate assets today but your liabilities are in the future. you need a market that bridges the idea of “ today ” with that of the “ future ” and that is the capital market. in this connection, the bsp ’ s initiatives to help develop and deepen the domestic capital market will present the banking sector and the sss with more opportunities for investment diversification. because of the fiduciary role of the sss, your ability to manage both sides of your balance sheet is crucial. in particular, investing your reserves prudently, while being mindful of the short and long - term financial requirements of your membership. the sss needs to be strong to service the social need for our pension system – to take care of us when we are past our retirement age. in an economy where not everyone

working. as has been said, “ banking is saving … pension is the reward for saving. ” in this context, we look forward to a stronger and self - sustaining sss. for the sss, sustained economic growth can only mean more members and better yields on its funds. in the case of sss and the bsp, we share a common goal of financial education to empower and help improve the lives of filipinos. the bsp has a national economic and financial learning program that reaches out to all age groups starting from grade i to college students to young professionals as well as overseas filipinos and their families. the capability of sss to reach out to millions of its members gives it tremendous advantage in promoting financial education. we are confident that sss, under the leadership of chairman santos and pres. de quiros will not pass on this chance to nurture financial literature and more financially - stable filipinos. we can work on this together. the bsp and sss. in the process, we will help maintain the stability of our financial system and promote sustained economic growth that is truly inclusive. once again, congratulations to the women and men of the sss on your 57th anniversary. mabuhay ang sss! mabuhay ang ating mahal na bansang pilipinas! maraming salamat sa inyong lahat. bis central bankers ’ speeches