amando m tetangco, jr : setting a milestone with the quezon city credit surety fund speech by mr amando m tetangco, jr, governor of bangko sentral ng pilipinas ( the central bank of the philippines ), at the quezon city credit surety fund lunch, manila, 18 august 2014. * * * good morning everyone! on behalf of the bangko sentral ng pilipinas and our partner institutions – the dbp, land bank and iglf – we thank quezon city under the distinguished leadership of mayor herbert bautista, vice mayor ma. josefina belmonte - alimurung, and the members of the sangguniang panlungsod for launching its own credit surety fund or csf. the quezon city csf is the first at the national capital region. this is therefore a significant milestone in our program to promote csfs across the country. this tells us that the local government in quezon city continues to find ways to support the further growth and development of local micro, small and medium enterprises – or what we call msmes. we know that through its sikap buhay entrepreneurship and cooperative office, the city government is pro - active in promoting access to credit, particularly for microfinance. this time, by setting up its own csf, quezon city is scaling up to help more members of cooperatives gain access to bank credit. with the csf, coop members with good credit standing can avail of bank credit even if they still lack collateral and sufficient credit history. on the part of the banks, csf is a welcome program, as it provides opportunities to comply with the mandatory 8pct credit allocation required under the law – ra 6977, as amended, also known as the act to promote, develop and assist smes – under a more manageable risk framework. as a whole therefore, the csf is a win - win program for coop members, banks and our national goal to have a more inclusive financial system that will support inclusive growth. indeed, we have seen the initial benefits from our partnerships under the csf. as of may this year, roughly p1. 1 billion in loans have been granted by 30 csfs to nearly 10, 000 msmes. with quezon city, we now have 31 csfs : 14 in luzon, 7 in the visayas and 10 in mindanao. we look forward to seeing the benefits of csf in quezon city, our country ’ s biggest city

as of end - september 2021, capital adequacy ratio ( car ) of universal and commercial banks improved to 16. 9 percent and 17. 4 percent on solo and consolidated bases, respectively, from the previous year ’ s 16. 3 percent and 16. 7 percent. banks ’ risk - taking activities are supported by adequate and high - quality capital. as of endseptember 2021, the common equity tier 1 ratio of universal and commercial banks improved to 15. 7 percent and 16. 3 percent on solo and consolidated bases, respectively, from the previous year ’ s 15. 5 percent and 16. 0 percent. liquidity buffers also remained well - above the minimum threshold of 100 percent. in particular, the universal and commercial bank industry ’ s solo liquidity coverage ratio reached 197. 7 percent as of end - november 2021, while the net stable funding ratio stood at 142. 8 percent on solo basis as of end - august 2021. the minimum liquidity ratios of stand - alone banks surpassed the 20 percent minimum. looking ahead, the philippines aims not only to regain what was lost from the covid crisis. we want the post - covid - 19 economy to be stronger, more technologically advanced, more sustainable, and more inclusive than ever before. on our end, we have two major objectives under our digital payments transformation roadmap • first is to have at least half of financial transactions in the country done digitally ; and second, to onboard at least 70 percent of filipino adults into the formal financial system through transaction account ownership. with the pandemic as a catalyst, we are on our way to achieve this goal sooner rather than later. on sustainability, the bsp has issued regulations requiring banks to adopt sustainability principles in their operations, such as by extending funding for green projects. finally, let me outline our exit strategy from our extraordinary monetary accommodative measures. the bsp ’ s exit strategy will begin with the recalibration of the bsp ’ s monetary operations to 3 / 4 bis central bankers'speeches ensure that our accommodative monetary policy translates to short - term interest rates. next, we unwind liquidity - infusing measures, such as provisional advances to the government and alternative compliance with reserve requirements. the bsp looks to gradually unwind its direct funding support to the national government with the expected improvement in government ’ s finances. the unwinding process has started. the third component entails the reduction