These include demographic changes and the rise of disruptive technologies. To address these challenges, the BSP trains its sights on implementing game-changing financial sector reforms to allow the financial system to be more flexible, market-driven, and innovative. At this point, let me focus on some of the major reforms that we have already put in place.
The effective implementation of the IRC has allowed us to initiate the gradual and phased reduction of reserve requirements consistent with efficient absorption of any excess liquidity. We began with a one percentage point cut effective in March this year.