MANILA, Philippines — Business groups welcomed yesterday the appointment of Budget Secretary Benjamin Diokno as the new chief of the Bangko Sentral ng Pilipinas (BSP), saying his work on fiscal policy and credentials would enable him to carry out the responsibilities of his new post.
“We welcome Sec. Diokno’s appointment. He’s very qualified both in experience and academic credentials with a PhD in economics,” Makati Business Club chairman Edgar Chua said in a text message yesterday.
For her part, Philippine Chamber of Commerce and Industry president Alegria Sibal-Limjoco said in a text message the group supports the appointment of Diokno who has served government and introduced reforms such as the cash-based budgeting system and modernization of the procurement system to strengthen government’s accountability for the use of public funds.
While Diokno is more of an economist than a banker, she said the new BSP governor has worked as adviser and consultant to various multilateral agencies such as the World Bank, Asian Development Bank, European Commission and US Agency for International Development for work in the Philippines, China and transitioning economies like Vietnam, Cambodia and Mongolia, and the experience would aid him in his job.
“His being an economist and having worked with government in such capacity, in fact, could work more to his, and our advantage. He understands the strategic direction of the economy, which gives him a balanced perspective of banking policies and programs,” she said.
In terms of banking operations, she said the BSP has highly competent officials and personnel who could readily assist Diokno.
The Management Association of the Philippines (MAP) said it also welcomes the appointment of Diokno as his expertise as an economist and his extensive experience in the executive branch on fiscal policy and management would serve him well in his new job.
The group said it supports the BSP’s initiatives to maintain price and financial stability for sustainable economic growth, as well as the push for a more efficient payments system to allow more individuals to have access to financing.
“We are confident that the BSP, under Governor Diokno, will continue to promote good governance and transparent policies in the financial system,” the MAP said.
For his part, American Chamber of Commerce of the Philippines senior adviser John Forbes said the group likewise sees the appointment of Diokno to head the BSP as a positive development.
“He is a highly experienced public servant and one of the country’s top economists. We hope he will complete the charter reforms that were not included in the recent amendments approved by the President,” he said.
Diokno replaces Nestor Espenilla Jr. who passed away last Feb.23, after battling tongue cancer.
The Bankers Association of the Philippines (BAP) also expressed support for the newly appointed central bank governor, and expressed confidence Diokno would be able to continue the necessary reforms in the banking industry.
“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 is optimistic that the reformist brand of leadership of the new BSP Governor will pave the way in continuing the necessary reforms and policies to strengthen the Philippine banking industry,” BAP said in a statement.
“Moving forward, the BAP supports the new BSP governor as a new chapter of the Bangko Sentral is about to unfold. 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,” it added