the parallel market to the formal market. we have streamlined fx requirements for the banking system to reduce market fragmentation and increase fx liquidity. we expect responsible behavior among market players. we have a collective responsibility to consistently build our markets to rise above the desire for short - term gains. on the regulatory front, we are pursuing continuous improvement aligned with global standards and best practices. the bsp is rolling - out the enhanced liquidity risk management framework. we are prescribing guidelines on the adoption of accounting standards to promote transparency and fairness in both financial and prudential reporting. the bsp is also continuously working to ensure that financial industry participants are sensitive to, and proactive in, addressing emerging cyber threats. we are enhancing as well our aml - cft compliance posture. the bsp continues to create a supportive policy environment for financial inclusion. banks are now allowed to use third party cash agents for increased on - boarding of the unbanked. we allow reduced know - your - customer ( kyc ) rules for certain low - risk accounts and use technology for face - to - face contact requirements to promote bank account ownership. we have created the framework for opening basic bank accounts. the bsp is also working closely with the national government for the implementation of a biometric - based national identity system to facilitate maximum access to financial services. we are also making big leaps in developing the country ’ s payment system even as we continuously improve the existing arrangements. today, we are capable of producing 43 million pieces of high quality currency notes per month, up from just 6. 5 million pieces 25 years ago. we also produce 200 million pieces of coins per month. our real time gross settlement system, philpass, processes 6, 000 transaction valued at php 1. 4 trillion per day. but we are upgrading it further to do more as we roll out the national retail payment system that will pave the way for the digitalization of our financial system. already, we have together launched pesonet and instapay. more inter - operable and cooperative payment schemes will follow soon. closing remarks as i close, i remind that as market stakeholders, to better navigate a more interconnected and sophisticated financial market system, we must be mindful of changes that are reshaping it. we must embrace the work that needs to be done, to stay... not only abreast, but ahead of developments. this task of navigation is, and has, never been an easy

##y of banks ’ business functions, especially in the bank / non - bank spectrum. the difference is not arbitrary but reflects real structural differences between regions. in particular, it would be unrealistic to always assume that “ one size fits all ” : we should not put carnivorous lions and herbivorous elephants in the same cage. we should also follow a well - balanced approach that properly recognizes the synergetic cross - effects of item - by - item regulations. an appropriate criterion should be the combined effects of all item - by - item regulations. simply focusing on the “ marginal effects ” of individual measures may be misleading, even though they have good individual rationale. at the same time, we should be aware of a possible trade - off between the long - term benefits and short - term costs of stronger regulations. such regulations may indeed enhance financial stability and economic prosperity in the long run, but the hasty implementation of stringent regulations may hamper a fragile recovery, such as we find ourselves in now. let me stop here for further discussion. thank you for your kind attention.