Outgoing BSP governor urges gov’t to name successor soon to ensure smooth transition

BANGKO SENTRAL ng Pilipinas (BSP) Governor Amando M. Tetangco, Jr. said his successor should be named as soon as possible to ensure ample time for transition, with roughly three months left before he steps down as central bank chief.

Mr. Tetangco told reporters yesterday that it would be best if President Rodrigo R. Duterte can name the next BSP chief at once, well ahead of his stepping down as governor by July 2.

“I think the name of the successor should be announced as early as possible... The earlier, the better,” Mr. Tetangco said on the sidelines of an economic briefing hosted by the Management Association of the Philippines at the Makati Shangri-la Hotel.

The outgoing central bank chief has been with the BSP since 1974, and has been serving as governor for 12 years.

Mr. Tetangco recalled that his appointment was announced by former Pres. Gloria Macapagal- Arroyo as early as February 2005, five months ahead of then- Governor Rafael B. Buenaventura’s term expiry. His reappointment was also announced by former Pres. Benigno S.C. Aquino III in January 2011.

So far, he has not heard of a final decision from Mr. Duterte as of this writing.

“As you know, there have been a number of people whose names have been mentioned — there are some from within the BSP and there are some from outside the BSP, but there’s no decision yet at this point in time,” Mr. Tetangco said.

The central bank governor has repeatedly stressed that he prefers to have an insider as successor, saying that the years of experience of working with the BSP would ensure a “seamless” transition given their familiarity with central banking.

In particular, Mr. Tetangco cited the need for a solid background in economics, monetary policy, and banking as requisites for the post, coupled with an understanding of the BSP’s goals of price and financial stability in crafting policy tools and regulations.

BSP Deputy Governors Diwa C. Guinigundo and Nestor A. Espenilla, Jr. are among those said to be in the running for the top post.

Former Monetary Board member and banker Peter B. Favila is also among the names being floated for the post. Meanwhile, East West Banking Corp. president Antonio C. Moncupa, Jr. has been endorsed by Mr. Duterte’s political party PDP-Laban for the position.

In a March 13 press briefing in Malacañang, Mr. Duterte has said that he would be “largely” listening to Finance secretary Carlos G. Dominguez III for the appointment, but that he will also secure the “concurrence” of other political leaders.

Mr. Tetangco said he has been in talks with Mr. Dominguez for the selection. Mr. Dominguez also sits as part of the Monetary Board, the country’s highest policy- making body.

Top executives from Philippine banks previously said that they also prefer someone already working for the BSP as the next governor to ensure “continuity” of programs and directions.

Jose Mario I. Cuyegkeng, senior economist at ING Bank N.V. Manila, said uncertainty ahead of the crucial BSP appointment likely adds to negative market sentiment towards the peso, which was seen as the “underperformer” among regional currencies last week, among other global and domestic concerns spooking investors. •