when the bsp issued the electronic money regulation. fast forward to 2017, during the time when most institutions were hesitant and unsure of the cloud services, the approach was again used to further explore the new technology, resulting in the first cloud deployment for core banking services under a pilot implementation. in line with the objectives of the nsfi, he bsp now seeks to formalize the existing test and learn 1 / 3 bis central bankers'speeches approach into a comprehensive and structured regulatory sandbox framework. under the proposed framework, the bsp shall ( 1 ) evaluate sandbox applications as to completeness and eligibility based on standards ; ( 2 ) determine the viability of the proposed solution by evaluating the test plan ; ( 3 ) monitor the implementation of the approved test plan ; and ( 4 ) assess whether the sandbox activity should be terminated or approved for full commercial roll - out. this framework will help direct bsp ’ s approach to encourage greater participation in our regulatory sandbox, especially for promising businesses that may be hesitant to raise groundbreaking ideas to existing regulators. the bsp has also implemented fintech - related policies and digitally driven initiatives to complement the test and learn approach and regulatory sandbox. first, on digital banking … the bsp has approved six digital banking licenses which we expect will drive greater efficiency in the delivery of financial products and services, especially for the unserved and underserved. second, on open finance … in january this year, the open finance framework was formally launched, along with the threeyear open finance roadmap 2021 – 2024. the roadmap outlines priority actions, including the adoption of industry - accepted standards, capacity - building for regulation, and cooperative oversight, which are all fundamental to establishing an open finance ecosystem. lastly, r & d of frontier technologies … the bsp also conducts research and development activities on frontier technologies, such as central bank digital currency ( cbdc ). moving forward, the bsp plans to roll out project cbdcph, which is the bsp ’ s pilot project to build organizational capacity and hands - on knowledge of cbdc design, architecture, technology, and policy implications. to promote the adoption and frequent use of digital financial services, trust in the system must be present. the success of digitalization initiatives rests upon ensuring that consumers are protected online and that they have adequate financial and digital literacy. accordingly, the bsp has actively supported the proposed financial consumer protection act ( fcpa ). the bill is now awaiting

detailed crisis plan that can be put in place within very short notice. the crisis plan should include the following types of information : organisational structure • a division of responsibilities for analysis, information, decision - making, etc. • staffing requirements for different tasks, with substitutes. analysis plan • a description of the information necessary to make a decision about whether or not a systemic crisis may occur. • necessary information about systemically important individual banks. information strategy • a plan for informing and coordinating information and decisions with the other domestic agencies involved in the crisis. • a plan for informing authorities in other countries about the situation. • a plan for communicating with the financial markets. • a plan for spreading information to the public and media ( ex ante and ex post transparency ). plan for implementing ela • a clear description of the routines which must be followed and the legal requirements which must be met for ela. legal procedures, for example contracts, for lending against other collateral than what is normally eligible • an inventory of the instruments available for implementing ela. • guidelines for acceptable collateral and appropriate haircuts. internal preparedness is important in order to be able to consider requests for ela, as the timeframe for reaction normally is very limited. it is important to note that preparation is crucial also if a central bank is to deny a request for ela. if the central bank has no organisation for analysing systemic consequences and the availability of measures, it is very likely that it will not dare not to lend. no central bank wants to give financial institutions and markets the slightest reason to depend on central bank support rather than their own efforts to avoid financial meltdown. clearly, ela is a last resort measure that central banks use only when the stability of the financial system is at stake. a well - planned and clear lolr function need not encourage moral hazard. on the contrary, a central bank with clear guidelines and a solid analysis capability is in the best position to pinpoint those situations in which ela is necessary. in all other situations, clear guidelines help the central bank to stand firm against the institutions ’ demands for help and to force markets to solve financial problems by themselves.