Tributes rain as Tetangco winds down BSP stint

MANILA, Philippines - It rained on Tuesday last week on the occasion of the 2017 annual reception for the banking community. It was not a slow drizzle nor was it a torrential downpour, but heavy enough for the host, the Bangko Sentral ng Pilipinas (BSP), to move the event to the Metropolitan Museum of Manila from the nearby Fort San Antonio Abad, the historic hidden fortress that has been the annual event’s venue year in and out.

It hasn’t rained like that in recent years. Or more accurately, it hasn’t rained like that during the much awaited yearly Bankers’ Night – the BSP’s version of Malacanang’s vin d’honneur toast for the new year.

Perhaps, like in one’s wedding day, that night’s rain signified good luck – a symbol of a new start, unity and renewal – omens of good fortune over all – following a challenging 2016.

Or the rains may have also signified the tears of sadness felt in that corner of the universe as BSP Governor Amando Tetangco Jr. nears the end of his second term on July 2, 2017.

After all, there are so many reasons to be sad about the departure of a veteran technocrat who has served as BSP Governor since 2005 and who has served the institution well.

Tetangco has been widely recognized as one of the world’s best central bankers, both here and abroad. In September last year, New York-based banking magazine Global Finance awarded Tetangco his eighth “A” grade in its annual scorecard for central bank governors’ handling of their nations’ respective economies.

He joins an elite group of only eight central bankers from around the world who garnered an “A” grade. Even US Federal Reserve chair Janet Yellen could only muster an “A minus.”

Of course the rain didn’t stop members of the banking community from joining what could be Tetangco’s last Bankers’ Night as BSP governor, to thank him for his excellent stewardship of the economy and the banking sector or to simply find out who would be the next in line.

After his speech behind the blue podium in the middle of the elegant museum, The Star asked Tetangco who he thinks would be delivering a similar welcome speech behind that podium next year.

Tetangco said he has left it to the “imagination.”

“And who might it be according to your imagination?” The STAR pressed on.

“The spectrum is wide,” he said in jest, refusing to be drawn on whether or not he has an anointed successor. He has repeatedly said the best candidate to succeed him should be someone with central bank background.

Indeed, the spectrum is wide. That night, potential heirs to Tetangco’s throne gamely posed for a rare photograph: BSP Deputy Governors Nesting Espenilla Jr. and Diwa Guinigundo, former trade secretary and former Monetary Board member Peter Favila and East West Banking Corp., chief executive officer and president Antonio Moncupa.

Whoever Tetangco’s successor would be remains to be seen. Tetangco has remained mum on President Duterte’s offer of a third term for him. 

But if his speech that night is any indicator, one could surmise Tetangco is ready to leave the BSP to enjoy retirement with his lovely wife Elma and their growing brood.  

All told, he has served as BSP governor for 11 and half years and barring last minute changes, he would be leaving the BSP at the age of 64, although he looks not a day older than when he was first appointed as governor at the age of 52.

That night, he thanked the banking industry players for their work and cooperation.

“Indeed, time flies. I end my second term as Governor of the Bangko Sentral ng Pilipinas on July 2, 2017. I take this opportunity, therefore, to thank the leaders of our banking industry and the BSP’s partner institutions for working with us through the worst of times, the best of times, and all the time in between. Together, we have nurtured a vibrant and dynamic banking sector that is sound, stable and globally competitive. Indeed, it is a banking industry we can all be proud of,” he said.

He led the crowd in heaving a collective sigh of relief following a challenging 2016.

“2016 has been described as a year like no other – it started off with a bang, with China’s stock market on a seeming free fall that shook global markets. We saw for the most part of the year global anxiety over the timing, pace and magnitude of the US Fed policy rate decision, by mid-year, the unexpected Brexit results shocked us, then came the surprise victory of US president-elect Donald Trump.  2016 ended with the world uncertain over global politics and policies and how these would impact on economies and people,” he said.

At the same time, Tetangco reminded the banking community that the Philippines’ strong fundamentals kept the economy growing.

“The Philippine economy grew by a seven percent in the first three quarters of 2016, giving us the distinction of being among the fastest growing economies in Asia. And it is broad-based growth we can be proud of:  it was supported by a strong services sector, a resurging industry and manufacturing sector, a rebounding agriculture sector, and robust consumption and capital formation,” he said.

He also took the opportunity to recognize the banking industry’s significant role in helping sustain the pace of growth of the economy.

Bank lending continued to expand by double-digit rates and went mostly to productive sectors. 

As of November 2016, consolidated bank loans reached P7.4 trillion, almost 19 percent (18.5 percent) higher than the year-ago level.  Indeed, the banking sector kept pace with the growth of our economy. Total assets of the banking industry reached P13.2 trillion, over 12 percent (12.4 percent) growth from the November 2015 level, while deposits increased by more than 13 percent (13.5 percent) to P10.1 trillion, an all-time high. 

“In other words, ladies and gentlemen, the Philippine banking sector not only survived 2016, it continued to thrive,” Tetangco said.

Amidst all the challenges, Tetangco said, he has had the privilege of managing the banking industry and seeing it evolve to where it is now.

Some of the guests present that night were Philippine National Bank chairperson Florencia Tarriela, ING Bank Manila country manager Zondy Garcia, former BPI president and CEO Aurelio Montinola III, National Treasurer Roberto Tan, Senate Majority Leader Aquilino Pimentel III, US Embassy Manila economic officer Pete Davis, Philippine Stock Exchange president Hans Sicat, SEC chairperson Teresita Herbosa, Anti-Money Laundering Council executive director Julia Bacay-Abad and past and present banking reporters.

“Together, we have nurtured a vibrant and dynamic banking sector that is sound, stable and globally competitive. Indeed, it is a banking industry we can all be proud of,” Tetangco said.