Banking exec: New gov to take BSP to new heights

“WE can expect the new governor to take the BSP (Bangko Sentral ng Pilipinas) to new heights especially in this day and age of digitalization.”

Eugene Rigodon, Cebu Bankers Club (CBC) outgoing president, said this as Nestor Espenilla Jr. took over the reins of the BSP from the former governor, Amando M. Tetangco Jr.

Espenilla’s term as BSP governor began last July 3 and will run for six years until 2023.

The new BSP governor succeeded Tetangco Jr., who served an unprecedented two consecutive six-year terms which ended on July 2.

Rigodon said that he is also expecting a smooth transition and continuity of monetary policies such as price and financial stability are expected under the leadership of Espenilla.

“We can also expect a decrease in the percentage of the unbanked as Governor Espenilla considers financial inclusion as one of the pillars of a thriving economy,” Rigodon told Cebu Daily News.

He also said he is expecting that the National Retail Payment System will be realized during Espenilla’s term.

He explained that this is a system where a country that trades in 99 percent cash will greatly benefit from as this will enable people to pay anywhere, anytime, and is maintained at reasonable charges.

The banking official pointed out that the new BSP governor was a co-pilot of the multi-awarded and internationally-praised former governor Tetangco in steering the Central Bank to where it is now.

CBC past president Maximo Rey Eleccion, for his part, said they have long been endorsing the appointment of an insider to replace Tetangco.

“We are pleased with Governor Nestor Espenilla’s appointment. He would provide stability and continuity of the BSP and financial sector,” he said.

Eleccion was optimistic the new BSP chief will continue to implement ongoing programs of his institution.

Banking on the fact that Espenilla used to handle the Supervision and Examination sector as deputy governor, Eleccion said he was confident that the Philippine banking system will remain strong and would, in turn, boost public confidence.

In his speech last Monday, the new BSP chief noted that while the Philippines continues to experience strong economic performance amid a stable macroeconomic and financial environment, such growth could truly be meaningful only if it would be inclusive, creating jobs and improving the people’s welfare.

He said promoting reforms in the macroeconomic and financial sectors are not enough, calling for the need to “push the envelope further.”

Amid the BSP’s drive to pursue its financial inclusion advocacy, Espenilla said they needed to work on bringing central banking operations closer to the people.

To do this, Espenilla said the BSP would continue to fine-tune our execution of monetary policy to make it even more market-oriented.