BSP, business groups cheer Diokno appointment as central bank chief

The Bangko Sentral ng Pilipinas (BSP) yesterday expressed its full support for the appointment of Budget Secretary Benjamin Diokno as the next central bank governor—a role that also makes him the country’s top financial regulator and chief inflation fighter.

In a press statement, BSP Officer-in-Charge Cyd Tuaño-Amador said that, as the fifth governor since the BSP was reorganized in 1993, Diokno brings with him “a special brand of leadership honed from decades of exposure to different facets of government operations to improve the lives of Filipinos, in cooperation with the private sector, the academe and various organizations.”

“The BSP community looks forward to his assumption into office, and to working closely with him to ensure the smooth functioning of the central bank to effectively discharge its mandate to promote price and financial stability, to ensure a safe, reliable and efficient payments system as well as to help sustain economic growth that is inclusive and participatory,” Tuaño-Amador said.

Diokno is scheduled to take his oath of office on Wednesday evening before President Duterte and will attend his first Monetary Board meeting as its chair on Thursday, after getting briefed by his deputy governors.

Diokno’s appointment was also welcomed by the Bankers Association of the Philippines (BAP), the umbrella organization representing the country’s biggest financial institutions.

“A respected economist, academic and civil servant, Diokno spearheaded various budget and governance reforms which improved the efficiency of the delivery of government services in the country,” the BAP said, adding it was optimistic that the new governor’s “reformist brand of leadership” would pave the way in continuing the necessary reforms and policies to strengthen the Philippine banking industry.

“Moving forward, the BAP supports the new BSP governor as a new chapter of the Bangko Sentral is about to unfold,” the group said. “The association will remain committed in its role as a partner of the national government in building a strong economy through an empowered Philippine banking sector.”

Meanwhile, a group advocating minority shareholder rights also welcomed Diokno’s appointment, saying the Cabinet official “has ably demonstrated his capacity and courage to withstand pressure, which bode well for maintaining the independence of the Monetary Board and the BSP.”

“Governor Diokno possesses excellent academic credentials and experience on policy formulation, fiscal policy and public sector management,” Shareholders’ Association of the Philippines (SharePHIL) president Francis Lim said. “With the able support of career officials in the BSP, we expect the continuation of the sound monetary policies espoused by his two predecessors, Governors (Amando) Tetangco and (Nestor) Espenilla.”

“We look forward to Governor Diokno’s support for SharePHIL’s mission in promoting capital market development through advocacy, education and enlightenment of shareholders,” Lim added.

Finally, the Management Association of the Philippines (MAP) also cheered Diokno’s appointment, saying it believed in his “expertise as an economist and his extensive experience in the executive branch on fiscal policy and management will serve him well in his new job.”

“We fully support the BSP’s initiatives to maintain price and financial stability in support of sustained economic growth, a more efficient payments system as well as its efforts to further broaden financial inclusion,” the MAP said.

“We are confident that the BSP, under Governor Diokno, will continue to promote good governance and transparent policies in the financial system,” the group added.