Benjamin Diokno
In 2022, the government is gunning for a domestic economy that is not only growing strongly, but also the best yet in terms of technological advancement and onboarding more segments of the population, according to Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno.
“The goal is not to simply regain what was lost,” Diokno said in a statement. “We will ensure that monetary policy remains in sync with other initiatives to hasten our economic recovery.”
The BSP chief noted that the BSP helped cushion the pandemic’s blow on the economy, with the policy rate going to—and, so far, staying at—a record low of 2 percent.
Diokno said this has helped infuse more than P2.3 trillion in liquidity to the economy.
The BSP has been pushing for a digital transformation of the Philippine financial system, and has set a goal of seeing half of financial transactions in the economy being done through digital means by 2023.
The idea is that the faster processing of payments speeds up capital turnaround and, therefore, income growth.
With enabling regulations such as ones issued based on the Digital Payments Transformation Roadmap, Diokno said the Philippines was poised to hit the 50-percent target in two years.
“The share of digital payments to total financial transactions rose to 20.1 percent in 2020, he said. “We expect further increases in 2021 amid the establishment of digital banks, expanded use of QR codes, and traditional banks’ enhancement of digital services, among other developments.
Diokno also professes confidence in the BSP achieving another goal by 2023, which is that 70 percent of Filipino adults—especially those belonging to low-income households—would have been onboarded into the formal financial system.
As of the second quarter of this year, more than half—53 percent—of Filipino adults are already using at least basic banking services. The proportion was just one third a few years ago, Diokno said.
“This is heartening, given the ability of financial services to unleash income opportunities,” he added.