Espenilla hosts first annual bankers’ night

MANILA, Philippines -  What a difference a year makes.

Last year, on Jan. 10, 2017, Bangko Sentral ng Pilipinas (BSP) Governor Nestor Espenilla Jr. stood inconspicuously on the right side of the stage as then BSP governor Amando Tetangco Jr. offered a toast to the country’s bankers during the annual reception for the banking community.

It was Tetangco’s last toast as central bank chief. And as he did that, many in the crowd wondered who would be doing that toast the following year.

Espenilla, if at that moment imagined himself to be the next one on that stage, did not show it. He was his usual self – nonchalant and low-key.

But as destiny would have it, Espenilla would turn out to be the next one to raise the glass for the bankers.

And so on Friday, at the 2018 annual reception, Espenilla did just that as the fourth governor of the BSP.

Dapper in his dark suit, Espenilla welcomed a huge crowd of bankers, government officials, tycoons and other guests who graced his very first annual reception.

That night, he had a husky voice as a result of a dental procedure. When The STAR teased him that he sounded like Italian mafia boss Don Vito Corleone, he laughed.

But with some of the country’s bankers waiting for their turn to see him that night, he was indeed every bit like the new Godfather. And the glittering Fort San Antonio Abad was the perfect hamlet.

He initially thought of asking Monetary Board member Peter Favila to just read his message, but in the end, Espenilla found his voice.

While he could only speak in a low voice, his message to the financial community reverberated loud and clear.

Continuity Plus Plus

“Perhaps most of you have already heard or read about a phrase I coined when I became BSP Governor in July 2017. I am referring to Continuity Plus Plus, a catchphrase for our strategic direction. ‘Continuity Plus Plus’ first appreciates that there is already a strong foundation to support a fast-growing economy and the opportunities it presents. Buffers are in place to better prepare us for external risks.

In this regard, stability demands continued dedication to the maintenance and strengthening of this foundation and buffers. ‘Continuity Plus Plus’ then also recognizes the need for additional strategic financial sector reforms to strengthen these economic buffers and pursue broad-based growth,” Espenilla said.

In all, he said, market efficiency would be the theme of the BSP’s reform agenda.

Laissez-faire

“It is important that markets discover prices on their own and for self-correcting mechanisms to be encouraged. We are confident that this will increase the financial markets’ abilities to absorb shocks... so that the BSP can focus on its core mandates,” he said.

Inflation

On the risks ahead, the BSP chief said risks to inflation outlook top the list.

“The unwinding of accommodative policies in advanced economies could have knock-on effects, contributing to potential capital outflows from emerging economies like the Philippines,” he said.

But, he assured, the BSP is ready to respond.

“We remain vigilant and ready to respond in a timely manner to second-round effects and possible shifts in inflationary expectations.”

Exponential returns

In closing, he rallied for the continued support of the banking community.

“May we multiply our efforts through greater collaboration and cooperation so we can stay ahead of all curves and bring about exponential returns for our beloved Philippines and our fellow Filipinos,” Espenilla said.

It was a stellar cast of bankers and businessmen in the crowd that night, paying their courtesies to the BSP’s new boss.

Among those who graced the event were taipan Lucio Tan, Jaime Augusto Zobel de Ayala, Teresita Sy-Coson, Lance Gokongwei and former prime minister Cesar Virata.

Securities and Exchange Commission chair Teresita Herbosa, Finance Secretary Carlos Dominguez and Philippine Stock Exchange chairman Jose Pardo were also spotted in the crowd.

Former central bank governors Jose Cuisia, Jaime Laya, and Tetangco also honored Espenilla with their presence and support.

Espenilla left long before the crowd thinned out, but it didn’t matter. In his Don Corleone voice, he had already conveyed his message to the banking community.