Banking community mourns BSP chief

MANILA, Philippines — The banking and finance community is mourning the death of Bangko Sentral ng Pilipinas (BSP) Governor Nestor Espenilla Jr., who passed away Saturday after battling tongue cancer for more than a year.

In a statement, the Bankers Association of the Philippines (BAP) said it is deeply saddened by the passing of Espenilla.

“The BAP applauds the legacy of (Espenilla) in leading the banking industry in the age of financial reforms and digitization, which was encapsulated in his vision of Continuity Plus Plus,” BAP said.

BAP added that it was grateful to Espenilla for his initiative to engage the industry and respond to its inputs in keeping with the BSP’s reform agenda.

“His legacy and dedication to the BSP and its constituencies will never be forgotten and his work will be a foundation in building a stronger banking industry for future generations,” BAP said.

“(Espenilla was) a humble public servant, progressive central banker and relentless champion of financial inclusion. His legacy lives on in every effort that we all do,” said Philippine eMoney Association chairman Orlando Vea. 

The Bank Marketing Association of the Philippines (BMAP) cited Espenilla’s role in accelerating the process of financial inclusion in the country. 

“He collaborated closely with industry associations like BMAP, to push for his advocacies such as financial inclusion and electronic payments. He made an impact in the lives especially of the unbanked and underserved,” BMAP added. 

“On behalf of the Insurance Commission, I want to express my condolences to Nesting’s family and to acknowledge with gratitude his contribution to our country,” said Dennis Funa, Insurance commissioner and member of the Anti-Money Laundering Council (AMLC).

According to Funa, Espenilla had pushed for the increase in AMLC human resources and capacity. 

“Under his leadership, the AMLC continued to pursue major reforms strengthening the country’s defenses against illegal money to ensure the stability of the financial system,” Funa said.

Former finance secretary and monetary board member Cesar Purisima offered his condolences to Espenilla’s family. 

“I am saddened to hear that we have lost a great public servant and a faithful guardian of our economy. (Espenilla) was both a product and a promoter of a strong, independent, competent and professional BSP,” Purisima said. 

Espenilla, 60, was diagnosed with tongue cancer in November 2017. He underwent surgery to remove the tumor and radiation therapy. He had been taking intermittent medical leaves since the diagnosis.

Espenilla was appointed BSP governor by President Duterte on July 3, 2017. 

He concurrently served as ex-officio chairman of the AMLC, Philippine International Convention Center and Financial Stability Coordination Council.

Under Espenilla’s leadership, the BSP pursued major reforms covering monetary and financial policies as well as the BSP’s organizational structure.

He spearheaded the digitalization of the retail payment system in the country for a more inclusive and efficient financial system.

During his tenure, the amendments to the BSP charter were finally passed, strengthening the capability of the central bank to deliver its mandate to promote price and financial stability and to foster a safe, efficient and inclusive payment system.

Before his appointment, he was deputy governor in charge of the Supervision and Examination Sector, which supervises banks and non-bank financial institutions under BSP jurisdiction.

Espenilla’s leadership focused on banking supervision, capital market development and credit policy.

He institutionalized risk-based and proportionate regulations, enabling BSP-supervised institutions to innovate business models and adopt digital financial services.

He also championed the issuance of regulations that promote consumer protection.

Espenilla used to describe himself as “homegrown,” having joined the central bank in 1981.

He earned a bachelor of science degree in business economics, graduating magna cum laude, and an MBA from the University of the Philippines.

He finished a master of science degree in policy science from the Graduate Institute of Policy Science in Tokyo, Japan.

The BSP’s Monetary Board designated Deputy Governor Ma. Almasara Cyd Amador as officer-in-charge.

Espenilla is survived by his wife Maria Teresita, daughter Jacqueline Joyce and son-in-law Ben Baltazar, sons Nikko Nestor and Leonardo Nestor and grandchild Zev Eron.

Malacañang yesterday also mourned Espenilla’s death and thanked him for his service to the nation. 

“As we express our condolences to the family, friends, colleagues and loved ones of (Espenilla), we express our gratitude to the man once in charge of disciplining banks for his complete devotion to his work and great service to the nation,” presidential spokesman Salvador Panelo said in a statement. 

Panelo lauded the BSP chief for bringing financial services closer to Filipinos and for implementing payment system innovations.

For their part, lawmakers extended their condolences to the Espenilla family.

Sen. Francis Escudero, who chairs the Senate committee on banks, financial institutions and currencies, said Espenilla’s character as a public servant was “a rarity nowadays.”

“(Espenilla) was a good, honest and humble public servant,” Escudero said.

“He was one of my partners in crafting the new law that amended the Central Bank Act and the Payment Systems Law, among other initiatives and reforms in the financial sector,” Samar Rep. Ben Evardone, who now sits as chairman of the committee on public information, said. 

Leyte Rep. Henry Ong, who took over Evardone’s post in the banking committee, agreed. 

“Espenilla was wise, tireless and determined in his push for banking reforms and updating legislation,” Ong said. – With Mary Grace Padin, Alexis Romero, Paolo Romero, Delon Porcalla