increasing awareness that the rules of the game are changing. take fintech as an example. this “ fourth industrial revolution ” has transformed and is transforming the way people think and do things. technological advances are changing our needs and wants. disruptions to the economic and financial landscape brought by innovation and technology are the new normal. these disruptions may aggravate inequalities among nations, putting inclusive growth in peril. will we be able to cope and compete? with the earlier discussions, i believe we are convinced that we will. in the philippines, we nurture a regulatory environment that will foster innovation while ensuring risks are effectively managed. we continuously monitor fintech developments. we espouse proportionate regulation, multi - stakeholder collaboration and consumer protection. we do this because we believe that the democratization of technology enables efficiencies. 1 / 2 bis central bankers'speeches this phenomenon of fintech, while new and exciting, shares commonalities with the silk road. both are powerfully transformative. but like the silk road, fintech ’ s positive impact can only be sustained if its further development and use are done in an inclusive manner. technology is our now and our future. to harness its benefits, we must collaborate and leverage on each other ’ s strengths. only then will we be able to enjoy sustained economic growth over the long term. i would like to end with this thought. this meeting is one of those opportunities to do just that. the philippines is honored to have hosted this event and i am privileged to be able to close it. we thank everyone for your commitment that has made this event a success. i look forward to more collaboration and the pursuit of deeper and more meaningful relationships as we move from ancient to modern networks and as we move forward, thriving as co - participants in the journey of digital transformation. thank you and mabuhay! 2 / 2 bis central bankers'speeches

increase in loans reflects the modest recovery in banks ’ overall lending attitudes along with improved economic prospects owing to the gradual lifting of lockdown measures. outstanding loans for production activities was mainly driven by the expansion in loans for real estate ( 7. 2 percent ), information and communication ( 26. 6 percent ), financial and insurance ( 6. 0 percent ), and manufacturing ( 4. 4 percent ). we see loan activity continuing to improve in the coming months as public health restrictions are gradually eased and domestic demand gains further traction. looking ahead, the central bank will remain patient in keeping policy support available to the 1 / 2 bis central bankers'speeches economy — particularly given the continued downside risks to economic activity associated with the pandemic. the inflation outlook over the policy horizon remains manageable. average inflation is seen to slightly exceed the upper end of the target band of 2 - 4 percent this year but is projected to settle close to the midpoint of the target range in 2022 and 2023. inflation expectations remain firmly anchored to the baseline projection path. but we are ready to adjust policy settings as needed to ensure the fulfillment of its price and financial stability mandates. we aim a smooth normalization of our time - bound pandemic measures. monetary policy settings will be outcome - based rather than anchored on a particular date. consistent with such approach, we will remain guided primarily by the outturns in economic data, such as inflation, real sector activity, and liquidity and credit conditions. i will end here. 2 / 2 bis central bankers'speeches