be eroded over time, either by high inflation or by excessive taxation. where a sustainable public debt - to - gdp ratio is now absent, it should be achieved ; where it is present, it should be maintained. the second point is that authorities everywhere need to ensure that domestic policies are promoting well - functioning markets for goods, services, capital, and labour. in particular, labour markets need to be flexible enough to facilitate the movement of workers from sector to sector as the economy adjusts to events. by promoting domestic flexibility, policy - makers in all countries could support confidence and boost growth. this would be good for national economies, and it would also help to resolve global imbalances. there is also a need for policy - makers to recognize the positive role played by a well - functioning social safety net. here, i am referring to unemployment insurance, public health care, and public pension systems. consider the countries of emerging asia, where such systems are lacking. citizens in those countries need very high levels of savings to mitigate the risk of job loss and illness, and to provide for the years after they leave the workforce. an effective and efficient social safety net pools risk, so that citizens can have increased confidence about the future and reduce their need for precautionary savings. i know that the chinese authorities that we at the bank deal with are well aware of the need to create a well - functioning social safety net. authorities everywhere also need to follow policies that help a country's financial system to work well. this is critical if the financial system is to carry out its vital role of helping to match savings with productive investments. the financial system can also support confidence by giving households and businesses appropriate access to credit. i know all of you in this room are well aware of the importance of a well - functioning financial system, so i don't need to belabour the point. but i would add that, in terms of supporting confidence, appropriate monetary policy is also critical. it is important that central banks follow policies that anchor inflation expectations and thus promote confidence in the future value of money. a renewed international monetary order having spoken about what policy - makers can do domestically, let me now turn to international issues. essentially, the global economy needs a commitment by all countries to a renewed international monetary order, and a willingness to play by accepted rules within this order. let me explain what i mean. around the end of world war ii, the developed countries came together and reached a series of

amando m tetangco, jr : bancnet 25th anniversary speech by mr amando m tetangco, jr, governor of bangko sentral ng pilipinas ( bsp, the central bank of the philippines ), at the bancnet 25th anniversary, makati city, 24 july 2015. * * * i am delighted to be with you tonight to celebrate bancnet ’ s 25th anniversary. silver anniversaries are always important. you have come so far, and the future beckons with exciting opportunities. and so, happy anniversary and congratulations to all the members, officers and staff of bancnet. from the point of view of the bangko sentral ng pilipinas, there are many reasons for you to celebrate. let me cite a million reasons why : • 113 member institutions as of end - 2014 represent an atm cardholder base of over 73 million. by march this year, the number had increased to nearly 78 million cardholders. • the high volume of switched transactions reached almost 500 million in 2014 or an average of 1. 36 million transactions per day. with the on - going integration of megalink into bancnet, you are creating a unified atm switch network in the philippines. finally, this is happening. these are significant milestones indeed but the story is not complete. our eyes are now set on creating a national retail payment system or nrps and bancnet should be part of this grand journey. what is nrps? well, nrps envisions filipinos to have easy access to financial services and have accounts to make payments, and receive or transfer funds to other accounts anytime, anywhere, at a reasonable price from any digital device. efficient retail payments contribute to the stability and efficiency of the financial system and the economy as a whole. studies have shown that shifting from paper based to electronic - based payment system can generate an annual savings up to 1 % of gross domestic product ( gdp ). how can this potential market impact your business? based on country diagnostics conducted by the better than cash alliance ( btca ), of which the philippines is a member, filipinos make about 2. 5 billion payment transactions per month worth us $ 74 billion, but only 1 % are transacted electronically ; 99 % of the transactions are paid either in cash or checks. nrps will allow us to start reversing this ratio. in other words, you have the option to have a bigger slice of this huge