the orderly unwind of not just a few of these structures and to avoid widespread contagion to other markets. effective risk management, therefore, now requires a better understanding of risks by the borrower and lender, the recipient and investor, as well as the supervisor. v. bsp ’ s policy responses these global forces necessitate action from central banks. this leads me to newton ’ s third law of motion, which states that “ for every action there is an equal and opposite reaction. ” a. monetary policy for the philippines, the first of the two forces i mentioned, i. e., increased global liquidity, poses a risk to bsp ’ s inflation target. if a force is threatening to alter the course of a variable under the bsp ’ s control, in this case, inflation, it is incumbent upon the bsp to act in order to keep inflation in check and the public ’ s inflation expectations well - anchored. let me briefly trace our monetary policy action during the course of this year, to see how we have responded to our assessment of the risk of global liquidity. the period december 2006 to may 2007 was marked by six consecutive months of domestic liquidity growth of more than 20 percent y - o - y. continued foreign exchange inflows from export receipts, foreign investments and of remittances fanned the surge in domestic liquidity. understanding that if unchecked domestic liquidity growth could stoke inflation, the bsp implemented additional liquidity management tools in may this year. these included the expansion of the coverage of entities that could access our sda window. indicators show that these tools are producing the desired effects as m3 growth has slowed down to below 20 percent in the last three months, with the latest figure at 14. 9 percent as of august. to improve the transparency of our monetary tools, the bsp implemented, in july, two complementary moves which effectively kept the monetary policy stance neutral. the tiering system on placements with the bsp was lifted and the bsp ’ s key policy interest rates were adjusted to 6. 0 percent for the overnight borrowing or reverse repurchase ( rrp ) rate and 8. 0 percent for the overnight lending or repurchase ( rp ) rate. just last week, the monetary board decided to reduce key policy rates by 25 basis points effective october 5, 2007. with the risk coming from liquidity moderating, benign inflation readings over the policy horizon provided room for

benjamin e diokno : data - driven road to digital financial inclusion speech by mr benjamin e diokno, governor of bangko sentral ng pilipinas ( bsp, the central bank of the philippines ), at the transunion and fintech alliance webinar, 6 december 2021. * * * members of the fintech alliance of the philippines headed by chairman lito villanueva, transunion chief revenue officer jay tirona, fellow public servants, financial inclusion partners, and fintech innovators, good afternoon. it is my pleasure to welcome participants to this webinar as we continue to discuss valuable insights and best practices in financial inclusion. the fintech industry is a pioneer in using data - driven strategies that give rise to innovations and enhancements meaningful to the users of financial services – offering accessibility to financial channels, creating user - friendly platforms, and providing reasonable costs, to diverse market segments. financial regulators likewise utilize data in formulating supervisory and regulatory policies that are responsive to the needs of financial consumers and address the evolving complexities of financial products. for the bsp in particular, the pandemic has strengthened our resolve to promote broad and convenient access to welfare - enhancing financial services for all filipinos. a lot of work still lies ahead, but the momentum to achieve these goals is now stronger than ever. the bsp is ready to carry the work forward through 2021 and beyond. financial inclusion is multidimensional, but at its most basic level, it starts with account ownership. transaction accounts like bank accounts and e - money wallets enable individuals and households to save money ; make day - to - day payment transactions ; send or receive remittances ; and receive salary, benefits, or financial assistance from the government. in this regard, the bsp with its digital payments transformation roadmap aims to onboard 70 % of filipino adults to the formal financial system through a transaction account by 2023. it is important to recognize however that rather than being an end in itself, financial inclusion is a means to achieve broader aspirations. the regular and continuing use of an account in particular, allows individuals and small businesses to build a rich digital footprint that can unlock access to a wider range of welfare - enhancing financial services. today, digital technologies provide an opportunity to accelerate financial inclusion. it facilitates efficiencies that make it possible for financial service providers to serve the unbanked and underbanked. mobile phone and internet usage in the philippines