have contributed to our continuing success at the bsp. you all deserve a round of applause. at the bsp, we move to great lengths to develop our people to be world class central bankers through a continuous program of staff development, strategic training and effective succession. thus, we have developed in our midst a highly qualified successor — i refer of course to deputy governor nestor espenilla, jr., a career central banker for 36 years now, who will assume the post of bsp governor on july 3, 2017. nesting has described his term as “ continuity plus, plus. ” indeed, we have a firm pipeline of policies and programs across the bsp that we have identified as critical, moving forward. this includes further refinements of our interest rate corridor, the implementation of our national retail payment system, the continuing banking sector reform agenda, and asean integration. we can therefore say that the bsp journey to stability continues. ladies and gentlemen. the philippine economy is in the cusp of a demographic window of opportunity, with our young population holding so much promise to reset and accelerate the country ’ s growth and development. we sincerely hope therefore that our books – with their lessons of the past — will serve not only inform but also inspire our readers, academics, and future generations of bspers to do their share in our continuing journey to stability. maraming pong salamat! mabuhay ang bangko sentral ng pilipinas! mabuhay ang ating mahal ng bansang pilipinas! mabuhay po tayong lahat! 3 / 3 bis central bankers'speeches

reform agenda to strengthen their ranks in terms of capitalization, risk management, and corporate governance. this successful collaborative strategy has given the banking system sustained growth momentum. indeed, we have made great strides in various aspects of our operations. ours is a narrative of proactive management and reform to advance our vision for the country. moving forward with all that we have achieved so far, are we then set for the future? well, no environment is ever static. as the central monetary authority, our role is always evolving. this is the de facto norm in central banking amidst the transformation of the global environment, our country ’ s objectives and its needs. this task is not straightforward, as it has to contend with unexpected financial shocks, political upheavals, and natural calamities. nevertheless, amidst the tides of change, we will continue to remain focused on ensuring price and financial stability in the country. we will find better ways to adapt the flexible inflation targeting framework to the lessons of the global financial crisis — that price stability, on its own, cannot guarantee overall financial stability. thus, sustained monitoring and active surveillance of monetary linkages will consider more granular relationships within the financial market. this will allow us the added perspective of identifying pressures that may be quietly building - up. new tools may be considered based on our very own experience to ensure the delivery of the bsp ’ s mandate. this requires us to organize ourselves, strengthen our ranks, refine our tools and innovate in our 2 / 3 bis central bankers'speeches approach to ensure that we secure the interests of our stakeholders and keep pace with the shifts in the environment. we will continue to be strategic in identifying a vision and setting down a framework to achieve it. in this connection, an s & p report on the banking system, dated may 14, 2017 makes us proud of what the men and women of the bsp - past and present – have achieved. the report said : “ the central bank has a record of supporting sustainable economic growth and responding appropriately to changing economic circumstances. its ability to maintain macroeconomic and price stability through an economic cycle has been tested, including a period of exogenous shocks. " for this i thank and congratulate everyone under team bsp! the journey continues ladies and gentlemen, my term as governor of the bangko sentral ng pilipinas ends in july 2 or 38 days from today. i take this opportunity therefore to thank all institutions, individuals, family and friends who