extended financial access through non - mainstream channels and creating alternative sources of financing for borrowers and entrepreneurs. we need to make our financial system more inclusive. if we move forward together on these fronts, we can truly make a positive difference in the lives of many more filipinos. the link between the real economy and our banking market must stay firm so that liquidity in the latter can translate into new productive capacity in the former. as it is, we see sustained growth for our economy in 2012 even as global growth continues to weaken. while the debt crisis in the eurozone persists there are, on the other hand, welcome signs … such as the strengthening of the us economy. here at home, we derive comfort from the fact that the philippine economy has stronger foundations to see us through the global headwinds, thanks to home - grown sources of resilience and reforms we continue to pursue. we also see benefits from the simultaneous running of both monetary and fiscal engines. as early as this month, the department of budget and management has practically released the 2012 budget to implementing agencies. other sources of optimism are the bsp ’ s expectations surveys showing that both business and consumer sentiment remains generally upbeat. ladies and gentlemen. it is providential that the philippines is hosting this year ’ s 45th annual meeting of the asian development bank at a time when our economy is primed for growth. finance secretary and monetary board member cesar purisima is the head of the philippine delegation. the meeting will take place from may 2 to may 5 and we expect about 4, 000 delegates to participate. the preparations are in full - swing and we call on your full support to make the event a success. and so, ladies and gentlemen, on this optimistic note, let us wish our banking community, our economy and our country a happier, healthier and more prosperous 2012 where good governance prevails and growth is truly inclusive. mabuhay ang pilipinas! cheers! thank you everyone and let ’ s enjoy the rest of the evening. bis central bankers ’ speeches

on the more specific issue of brexit, the direct exposure of the philippines to the uk is relatively limited. the bigger concern, however, is whether the other eu economies will follow the uk ’ s lead ; given that our trade exposure to the eu is larger at around 12pct. as for the trump election, we will need to see how his campaign rhetoric translates to actual policy. our eyes and ears are tuned to january 20, when he actually takes over the white house. the second risk comes from the us fed ’ s future policy rate actions. at its meeting in december 2016, when the fed raised its target rate for the first time for the year, the fed indicated that it would raise rates three more times in 2017. if the fed veers from this, volatility in both the global and domestic fx and fixed income markets could rise. a steeper than expected hike in us interest rates could lead to a faster rise in domestic commercial and government securities interest rates also, as well as stronger depreciation pressures on eme currencies, including the peso. such price movements may adversely affect the balance sheets of domestic corporates and banks, especially of those that have fx and floating - interest rate obligations. this adverse result would be magnified if the markets panic, overreact, and thus amplify the initial increases in interest rates and weakness of the peso. moreover, a tightening in domestic financial market conditions could also dampen domestic credit activities in the near - term. however, if the reason for fed tightness is that the underlying us economic growth has become stronger, then that may offset some of the near - term negative impact of the fed tightening and lead to over - all support for global growth in the medium - term. on the other hand, if the fed turns dovish ( i. e., fewer or no further hikes in 2017 ), then that could encourage “ risk on ” market behavior, stall domestic interest rate increases and dampen depreciation pressures in emerging markets. but such result is unlikely, as trumponomics, which is reported to focus on increased fiscal spending, is widely expected to be inflationary. third. in addition to these external risks, we also have risks emanating from the domestic front such as political noise and adverse weather disturbances. moreover, while the administration has committed to ramp infrastructure spending, they could be forced to cut back on this, should 2 / 4 bis central bankers '