MANILA – The late Bangko Sentral ng Pilipinas governor Nestor Espenilla’s successor should be career central banker with a firm grasp of macroeconomics and monetary policy, his predecessors said.
Espenilla passed away last week after a one-year-long battle with tongue cancer. At the time of his death, inflation slowed closer to the BSP’s 2 to 4 percent target after a cumulative 175-basis point increase in the benchmark lending rate last year.
“Unfortunately, he had to be a man in a hurry. We all know why that is so now. That was all the time he had left,” said Espenilla’s immediate predecessor, former BSP governor Amando Tetangco Jr.
Tetangco, who served 2 terms as governor, said the head of the central bank should have a “very good grasp of macroeconomics particularly monetary policy and a good understanding of banking supervision.”
“Being a BSP Governor is a multi-faceted job and it would require not only technical competence, which is very important, but would also require the skill to deal with people properly,” he said.
Former BSP governor Jose Cuisia Jr said Espenilla’s successor should be able to continue the late central bank chief’s reform initiatives.
“I personally think it would be good if the President appoints an insider. They have very competent people there who can do a great job as BSP governor,” he said.
THE CONTENDERS
Presumed contenders for Espenilla’s post include his three deputy governors, Diwa Guinigundo, Chuchi Fonacier and Cyd Tuano-Amador, the current officer-in-charge. Monetary Board member and former trade secretary Peter Favila is also rumored to be in the running.
Guiniguindo lost out to Espenilla when Tetangco’s replacement was selected in 2017. Should the post go to either Amador or Fonacier, the BSP will have its first female governor.
Amador heads the corporate sector, Fonacier leads the financial supervision sector while Guinigundo is charge of the monetary and economic division. All are long-time central bankers.
“Institutional memory provides stronger support at the central bank. When you reach the level of managing director and deputy governor, what is expected of you is to be able to take the place of governor,” Guinigundo said.
Fonacier said the next BSP governor should focus on the institution’s mandate to ensure price stability while promoting financial inclusion and consumer protection.
Fonacier, who occupies Espenilla’s former deputy governor post, described the late governor as a “very supportive boss.”
Fonacier said Espenilla told her recently: “We can really ride this out together.”
“That was really a moment that i remember his full support for me and of course during difficult times, when you know your boss will always be there to support you, is really, really something,” she said. (ABS-CBN News)
