This is in part because emerging-market economies have less developed financial systems that may not be able to generate enough financial assets to absorb domestic savings, so capital flows from these countries into others where the financial systems are more advanced. See E. G. Mendoza, V. Quadrini and J.-V. Ríos-Rull, “ Financial Integration, Financial Deepness and Global Imbalances,” Journal of Political Economy 117, no.
These initiatives, together with the passage of the National Payment Systems Act (NPSA, RA 11127) that grants the BSP with regulatory oversight over payment systems, will significantly advance our digitization agenda.