Espenilla takes helm at BSP, Tetangco bids ‘till we meet again’

MANILA, Philippines - An emotional Nestor Espenilla Jr. took the helm of the Bangko Sentral ng Pilipinas (BSP) yesterday as former governor Amando Tetangco Jr. bid bank presidents, other central bank officials and employees: “till we meet again.”

In his inaugural speech as BSP governor, Espenilla said the Philippines has to be mindful of potential sources of vulnerabilities amid the sound macroeconomic fundamentals from earlier reforms.

“The year 2016 saw the unfolding of unexpected global events that have escalated the level of policy uncertainty and market volatility. We have to be prepared as well for the seemingly imminent wind down of ultra-easy monetary policies in advanced economies. We need to be mindful of such events and their potentially far-reaching consequences since these could undermine our economic performance and disrupt our carefully-laid plans,” he said.

He pointed out rapid technological innovations in the delivery of financial products and services are changing business models and the role of social media as an information channel has accelerated.

“We cannot also be blind to the dark spectre of cyber-crime that can quickly undermine trust in our financial system. There is no substitute for eternal vigilance, proactive action, and public education,” he added. 

According to Espenilla, the changing landscape calls for authorities to be more vigilant, proactive, and dynamic in responding to the needs of stakeholders.

“As policymakers and financial supervisors, we have to be in tune with these emerging market trends and evolving client needs, including the ‘millennial’ upside of our young population. Indeed, the new frontier presents central banking with challenges that have not been there before,” he said.

Espenilla, also known as Nesting or NAE, said the Philippines is one of the fastest growing economies in the region amid an effective conduct of monetary policy through flexible inflation targeting that has led to a low and stable inflation environment that sustained economic growth.

He pointed out the domestic banking system continues to be fundamentally sound and stable.

The new BSP chief said his predecessor, ‘Say’ Tetangco, helped the Philippines sail the rough seas and kept the economy and the financial system on an even keel for the past 12 years.

Espenilla, who joined the the Central Bank of the Philippines in 1981 and rose through the ranks, earlier said his dream came true after it was announced last May 8 that he was appointed by President Duterte as Tetangco’s successor.

“Even when the going gets tough, my fervent wish is that I never lose sight of where I came from. Ako ay laking BSP. Ang aking husay at lakas ay galing sa BSP,” he said with a breaking voice.

Tetangco, who ended his 43 years at the central bank including the unprecedented two six-year terms last July 2, yesterday turned over the BSP flag to Espenilla who took his oath before Finance Secretary Carlos Dominguez.

Dominguez also swore into office yesterday reappointed Monetary Board member Felipe Medalla, returning member and former trade secretary Peter Favila, and new member banker Antonio Abacan Jr.

“Today as a I leave the BSP as citizen ‘Say,’ I will not say goodbye. Instead, I will say, until we meet again,” Tetangco said.

BSP officials and employees were in their best Filipiniana attire as the central bank celebrated its 24th year anniversary with a theme “Together Moving Forward: A new season of Excellence.”