BSP board choices signal continuity

THE PRESIDENT has reappointed one member of the Bangko Sentral ng Pilipinas’ (BSP) Monetary Board and named two others to the body in a move to assure smooth transition at the central bank’s helm, the Finance department announced yesterday.

“President [ Rodrigo R.] Duterte has retained former socioeconomic planning secretary Felipe [M.] Medalla and appointed two new members — Peter [B.] Favila and… Antonio [S.] Abacan Jr. — to the Monetary Board,” the department said in a statement.

Mr. Medalla, a former socioeconomic planning secretary from July 1998 to January 2001 under ex- president Joseph E. Estrada, will serve a second term at the Monetary Board after he was first appointed in 2011 by Mr. Duterte’s predecessor, Benigno S. C. Aquino III. He had also served as a director of the Philippine National Oil Co.-Exploration Corp. and of Asia United Bank Corp., and was an independent director of the Metro Pacific Tollways Corp. and former dean of the University of the Philippines School of Economics.

Mr. Favila returns to the board three years after his 2008-2014 stint. He was Trade chief from 2005 to 2010 under former president (now House of Representatives Deputy Speaker) Gloria M. Arroyo and was deemed among the frontrunners in the race to succeed BSP Governor Amando M. Tetangco, Jr., who ends two six-year terms on July 2. He was president of Allied Banking Corp.; president and chief executive officer (CEO) of Philippine National Bank; a consultant of BSP and CDC Holdings, Inc.; as well as president and chairman of the Philippine Stock Exchange from 2001 to 2005.

Mr. Abacan was president of Metropolitan Bank & Trust Co. from 1993 to April 2006 and of Philippine Savings Bank and Unibancard Corp. from 1988 to 1991. He is also a senior adviser at First Metro Investment Corp.; Federal Land, Inc. and Toyota Manila Bay Corp.; as well as chairman of the board of Toyota Financial Services (Phils) Inc.

Mr. Duterte’s appointees will serve the board for six years, with Messrs. Favila and Abacan replacing Alfredo C. Antonio and Armando L. Suratos whose terms will expire on July 2.

They will sit on the board with Finance Secretary Carlos G. Dominguez III; Juan D. de Zuñiga, Jr.; Valentin A. Araneta and incoming governor, Deputy Gov. Nestor A. Espenilla, Jr.

“Alongside the appointment of BSP deputy governor as the next governor of the central bank, the President’s selection of Favila and Abacan as the new members of the Monetary Board will keep the BSP in good hands over the medium term,” the statement quoted Mr. Dominguez as saying.

“They were carefully chosen by the President to ensure that we continue with… policies that would help sustain our growth momentum and attract more investments.”

Sought for comment, Security Bank President and CEO Alfonso L. Salcedo, Jr., in a mobile phone message described Mr. Duterte’s Monetary Board appointments as “very capable” and “excellent choices.” — Elijah Joseph C.

Tubayan with J. M. D. Soliman and Reuters