entrepreneurs. this is because accepting payments via qr is simple and affordable. it simply involves printing out the qr ph code that will be generated by banks and electronic money issuers for consumers to scan. with one bills payment facililty, we will remove the inefficiencies associated with the current fragmented bills payment mechanisms. with this facility, the billers will be capable of collecting from their customers even if the payment service providers of the billers are different from those of the customers. through the request to pay service, we will provide a more flexible way for businesses and consumers to make payments. the payee will only need to send an electronic request for payment to the payer, showing how much is being requested for payment and when it falls due. 2 / 4 bis central bankers'speeches the request offers flexibility by presenting several options, which are : to pay in full, to pay in part, to make a counteroffer for extension, or totally decline the payment. in any instance, the payee is notified of the choice of the payer. this facility will surely be useful for countless business transactions. another initiative in the pipleline is the direct debit use case. here, the payer sends the payee an electronic authority or mandate to draw funds directly from the payer ’ s account on a regular basis. this payment use case is ideal for recurring payments such as monthly rentals, periodic loan amortizations, and quarterly insurance premiums. with digital financial services emerging as the “ new norm ”, the bsp proactively builds a regulatory environment that is conducive to digital innovations. in this regard, we are finalizing an enabling policy for fully digital - oriented banks, establishing “ digital banks ” as a new bank classification. this new and upcoming bank classification is distinct from the other bank types. digital banks will have minimal or zero - reliance on physical touchpoints, since they will conduct end - to - end processing of financial products and services through digital platforms and electronic channels. instead of putting up a branch or a branch - lite unit, these banks shall only be allowed to establish an office dedicated to receiving and addressing customer concerns. the bsp shall emphasize “ quality vs quantity ” when issuing digital bank licenses. this means that we shall continue to adopt prudential standards when granting a digital bank authority, permitting only applicants meeting our financial and risk management requirements. we are now refining our digital banking framework, based

provision measures have improved system liquidity in the past weeks and stabilized broad funding conditions. however, risks to the growth outlook continue to be tilted to the downside and currently a ushaped recovery is expected. the challenge, therefore, is to provide tangible boost to the economy through the appropriate combination of fiscal response and monetary measures. rest assured, macroeconomic policy measures are in place to address downside risks associated with the covid - 19 pandemic. in line with this, the bsp will continue to work with market participants and relevant government agencies to ensure that its policy responses remain timely and appropriate particularly during these challenging times. thank you. 2 / 2 bis central bankers'speeches