as you induct your new leaders today, i wish to share and expound on five ( 5 ) truths that i believe can strategically move the industry forward. allow me to divert from old english naysaying and focus on some “ truths in lending. ” first, economic conditions are favourable and allow for robust lending and leasing operations. second, a sound legal and regulatory framework greatly ensures prudent and responsible financing practices. third, to be more successful, industries must recognise markets ; seize opportunities ; leverage on digital technology ; and engage in continuous training and development. fourth, in doing so, there must be collaboration and cooperation with industry players ; fifth industries must allow open dialogue, and foster a healthy partnership with its regulators. 1 / 5 bis central bankers'speeches let me expound. first truth : favorable economic conditions are present to allow robust industry operations the philippines ’ positive economic outlook coupled with the government ’ s thrust to promote infrastructure spending, favours the country ’ s financing and leasing industries. while global economic and political conditions remain challenging, the philippine economy is strongly supported by buoyant consumer and corporate demand. it is projected to grow at 6. 8 percent in the medium term. the inflation outlook for the next two ( 2 ) years is manageable and within the government ’ s three ( 3 ) percent ± one ( 1 ) percentage point target. moreover, our international reserves remain at a healthy level usd80. 8 billion as of end - july 2017 — enough to cover almost nine months of imports and payments of goods and services. these favourable conditions however do not do away with the need for vigilance on both our parts. since we are a small, open market economy, the philippines is vulnerable to abrupt shifts in global investor sentiment. these shifts can result in some volatility in the financial market. moreover, as the bsp adopts a market - determined exchange rate policy, fluctuations in the peso - dollar exchange rate are expected, as it adjusts to market conditions. mindful of potential sources of systemic risk, the bsp has strengthened the framework for financial risk surveillance even creating a dedicated unit responsible for tracking and monitoring systemic risks and their channels of contagion. but these concerns will have implications on your operations as well, and it is wise to be watchful. another key development to be mindful of, is the pace by which the u. s. is normalizing its monetary policy. even though the fed has been gradual and relatively predictable

players in the industry to recognise and serve markets – especially the msme sector seize opportunities not just for profit but to actively participate in financial inclusion efforts leverage on digital technology and engage in continuous training and development. fourth, industry players would benefit from collaboration and cooperation. fifth and finally, continuous dialogue and a healthy partnership between regulators and the regulated would result in greater 4 / 5 bis central bankers'speeches industry support, rationalised regulations and national development. we encourage you to help us in this regard. rounding these points up, i will end with sage advice ( again from shakespeare ). the world ’ s pre - eminent dramatist and poet said, “ our doubts are traitors, and make us lose the good we oft might win, by fearing to attempt. ” given the crucial role we play in economic development and even in financial inclusion. let us not fear to attempt. it is our pleasure in the bsp to stand with you, friends and colleagues of pfai, to endeavour to believe in the great strides we can make together for the betterment of the business environment for the credit, financing and leasing industries for msmes for our nation. thank you for your kind attention. congratulations to your new officers. mabuhay ang ating mahal na bansang pilipinas. 5 / 5 bis central bankers'speeches