Diokno at home in his kingdom

Vows to bring BSP closer to the people

MANILA, Philippines — When President Duterte said in jest that he threw Benjamin Diokno to the Bangko Sentral ng Pilipinas, he said it in a way that it was a punishment of sorts.

The President, famous for cracking jokes, was kidding of course.

The truth is, being appointed head of the country’s most trusted government institution is not a punishment at all.

No, Mr. President, you did not send Governor Ben to the dungeon. On the contrary, you gave him a kingdom.

Indeed, the BSP is a kingdom of its own, an empire staffed only by some of the best and the brightest civil servants in the country.

Thus, to be called to serve its highest position is an honor that is almost unparalleled.

Not everyone will have that honor and privilege, and just like the presidency of the country, you will only get it if it’s your destiny.

The former secretary of the Department of Budget and Management (DBM) knows this and it certainly showed in his warm smiles and swagger looks last Friday as he opened the doors of his kingdom to the members of the banking community.

BSP Governor Benjamin Diokno (middle) is joined by (from left) tycoon Lucio Tan, CTBC Bank vice chairman William Go, former BSP governor Amando Tetangco Jr. and PNB chair Florencia Tarriela.

Held at the BSP Assembly Hall, the event was Diokno’s very first reception for the banking community as BSP governor. The timing couldn’t be more perfect because it was also a fitting celebration of the central bank’s 70th anniversary.

It was a crowded house and many of the country’s top banking honchos came to pay their courtesies to the new king.

Among them were airline and tobacco magnate Lucio Tan, chairman of the Philippine National Bank; Jaime Augusto Zobel de Ayala, chairman of Bank of the Philippine Islands; Helen Yuchengco-Dee, chairperson of Rizal Commercial Banking Corp. and Tessie Sy-Coson, chairperson of BDO Unibank Inc.

Zobel was one of the early birds because he said, “Governor Diokno is very punctual.”

Tan, 85, was also an early bird. He was one of the older ones in the crowd but it certainly did not show. He walked very fast and unaided and his energy level that night could put the younger bankers to shame.

Security Bank’s new president Sanjiv Vohra was also spotted in the crowd.

Jose Pardo, chairman of the Philippine Stock Exchange (PSE), also graced the occasion and so did his fellow former finance secretary Ernest Leung and former minister of finance Cesar Virata.

It’s not a bankers’ night without the dapper Amando Tetangco Jr. of course. Tetangco, the multi-awarded two-termer BSP governor, may have retired already and is now often called “Citizen Say,” but his presence is still very much keenly awaited.

But the surprise of the evening was no less than Senator Imee Marcos, the daughter of the late president Ferdinand Marcos. The new senator is head of the Senate Committee on Economic Affairs and as such, was invited to the event.

And as a Marcos often does -- for reasons controversial or otherwise -- Senator Imee surely made heads turn with her presence that evening.

70 years

Photo shows (from left) BPI executive vice president Simon Paterno, BDO Unibank chair Tessie Sy-Coson, Grace Glory Go of The STAR, and BDO president and CEO Nestor Tan.

In his speech, Diokno trumpeted the BSP’s distinguished heritage and rallied continued support for the institution.

“I am pleased to host tonight’s reception for the banking community. This month of July, we celebrate BSP’s 26th anniversary. At the same time, we commemorate an important milestone: the 70 years of central banking in the Philippines.”

He also put the spotlight on the launch of the BSP’s anniversary book.

“Few institutions in the country can claim such a long and distinguished heritage. The book written by career central bankers themselves— stands as a testament to this as we get a glimpse of what the central bank has done through these seven decades: the evolution of ideas, the progression to policies until its fruition to execution of programs and projects that ultimately redound to the benefit of the Filipino people,” the BSP chief added.

According to Diokno, the amendments to the BSP charter under Republic Act No. 11211 is very timely as it enables the central bank to cope with constantly evolving challenges and bolsters its capability to safeguard the stability of prices and the financial system.

No one left behind

Diokno with Senator Imee Marcos who heads the Senate Committee on Economic Affairs.

“This brings me to my next point—that strong institutions are critical in nation-building and this is true for a central bank. So for us here in BSP, our ability to deal with the risks and challenges of the economy is largely dependent on how well prepared and pro-active the central bank is,” Diokno said.

He added the BSP has toolkits to address risks, threats as well as gaps and opportunities.

He said financial inclusion is on top of the BSP agenda because “no one, really, must be left behind.”

Closer to the people

With him at the helm, Diokno said the central bank would not be vague to markets and would be closer to the people.

“We will intentionally bring the BSP closer to the people. A central bank cannot operate from an ivory tower. It is important that BSP stakeholders understand what we are mandated to do. It is crucial that our stakeholders trust our integrity and our capability to carry out our mandate,” he said.

BPI chairman Jaime Augusto Zobel de Ayala shakes the hand of BSP Governor Benjamin Diokno.

On the financial sector, Diokno said the BSP is committed to: strengthen risk governance, leverage on technology, achieve greater and broader access to financial services, uphold the integrity of financial system and safeguard the interest of the public and accelerate capital markets reforms.

In all, he said the BSP would continue to play an important part in nation building and in writing the story of the country’s future.

“And so - as BSP moves into the story of our future, let me reiterate that every thought, every word, every act of the Bangko Sentral is an opportunity to make a difference for a better quality of life for every Filipino. We will be steadfast in this pursuit and we will continue to reinvent ourselves through fresh ideas, calculated risks, and game-changing reforms,” Diokno said.