Bankers, economists hail Espenilla appointment

Nestor Espenilla Jr. —RICHARDA. REYES

Bankers, economists, business groups and lawmakers hailed President Duterte’s decision to appoint an insider to head the Bangko Sentral ng Pilipinas (BSP)—seen as an assurance of “independence” and “continuity” of sound monetary policies.

BSP Deputy Governor Nestor Espenilla Jr., a career central banker currently in charge of banking supervision and examination, has been named to succeed Amando Tetangco Jr. when he steps down in July after 12 years, having served a maximum two terms.

In a text message to reporters, Tetangco said Espenilla was well respected in the banking community and highly regarded by other central banks and financial regulators.

Tetangco said he was confident “that with [Espenilla] at the helm, the BSP will continue to be a pillar of support to the economy, [which] should remain among the top-performing economies in the world.”

‘Very capable professional’

East West Banking Corp. vice chair Antonio C. Moncupa Jr., who was supported by the ruling Partido Demokratiko Pilipino-Lakas ng Bayan Party for the top BSP post, congratulated Espenilla.

“A very capable professional, he will do the country good,” Moncupa said.

Romeo Bernardo, an economist at New York-based think tank Global Source, said Espenilla’s appointment would augur well for the economy.

“It also confirms what we have always said, that in matters concerning the economy, the President listens to his economic team led by Finance Secretary Carlos Dominguez,” Bernardo said.

Nestor Tan, president of the country’s largest lender, BDO Unibank, and also of the Bankers Association of the Philippines, described Espenilla as “very capable and he represents continuity.”

Emilio Neri Jr., Bank of the Philippine Islands lead economist, said the choice of an insider as the next BSP chief provided an assurance that sound central banking in the country would continue but that policy would be “more flexible while remaining independent.”

ING Bank Manila senior economist Joey Cuyegkeng said the appointment of Espenilla was a choice for “continuity” of monetary and financial system policies.

Surprised, happy

Monday’s announcement of his appointment in Malacañang came as a surprise to Espenilla, who said there was “very tough competition” for the job.

“I basically was asked to go to Malacañang on Tuesday and after that it went very quickly already and then before I knew it, I was being announced,” he said.

In a press conference on Tuesday, Espenilla said he was “very happy about it, at the same time I know the challenge and the burden that comes with the job.”

“But I can’t complain because I have sought it and I have prepared for it. And I am determined to do a good job at it,” he added.

The incoming BSP chief expressed gratitude to Mr. Duterte “for his trust and confidence in appointing me,” as well as to Finance Secretary Carlos G. Dominguez III for “supporting that choice.”

Grateful

“Of course, I am grateful to my mentor, Governor Amando ‘Say’ Tetangco Jr., who was not only prepared but also created a very strong organization, [which] I will inherit,” Espenilla said.

He said the next six years at the BSP would be “continuity plus plus.”

Espenilla has been with the BSP since 1981 and has worked in economic research, international operations and in the Office of the Governor. He rose through the ranks and was appointed deputy governor in 2005.

Analysts said his many years with the central bank would help him to hit the ground running when he starts work on July 2.

Espenilla has driven many of the country’s recent banking reforms, including raising minimum capital requirements, improving financial transparency and overhauling mismanaged banks.

Relaxing secrecy law

He said in a TV interview that he would continue the central bank’s advocacy for relaxing the bank secrecy law and said he was committed to promoting financial inclusion and competition in the financial system.

“To me, the plus element really is to find innovative ways to make our financial system even more responsive to the broader Philippine community,” he said.

Sergio R. Ortiz-Luiz Jr., president of the Philippine Exporters Confederation, said Espenilla was a good choice, as it would raise hopes that there would be programs pursued for the development of the small and medium enterprises.

“We’re confident the BSP is in good hands,” said George Barcelon, president of the Philippine Chamber of Commerce and Industry.

John Forbes, senior adviser of the American Chamber of Commerce of the Philippines, said Mr. Duterte made “a great choice.”

Rooting for insider

Lawmakers also welcomed Espenilla’s appointment.

Sen. Francis Escudero said he had been rooting for an insider to be the next BSP governor.

“[Espenilla] is in the best position to provide continuity, having been in the ‘front seat’ for quite some time now,” said Escudero, chair of the Senate committee on banks, financial institutions and currencies.

Sen. Sonny Angara is confident Espenilla will be able “to continue Tetangco’s fine record.”

“Many in Congress know him because he was a resource person for BSP and banking or financial issues during legislative hearings,” Angara said. —WITH REPORTS FROM THE WIRES AND CHRISTINE O. AVENDAÑO