We are upgrading the banking system’s capitalization and risk management standards to be fully compliant with Basel II by 2007l we are also institutionalizing corporate governance and financial transparency. By yearend, the banking industry will adopt the new international accounting standards (IAS/IFRS). The Monetary Board very recently approved the implementing guidelines.
We are likewise improving the current regulatory framework through close coordination with other local and foreign financial regulators. I am happy to report that the Financial Sector Forum, our partnership with local financial regulators (SEC, IC and PDIC), is now fully operational with major projects currently underway. These projects include conglomerate mapping, information sharing, joint examination arrangements, rules harmonization and financial literacy.