The independent Bangko Sentral ng Pilipinas (BSP) said it was President Benigno S. Aquino III who enabled the BSP to have a buffer by providing it — finally after past presidents’ inaction – to be sufficiently capitalized in 2012.
“The BSP deeply appreciates President Aquino’s support for the BSP’s mandates and advocacies, especially in ensuring a stronger and more capitalized central bank through the release of its legally mandated equity infusion in 2012,” the BSP said in their statement on the passing of President Aquino last Thursday, June 24.
During Aquino’s term, the BSP badly needed its long-delayed P50 billion capital infusion to strengthen its financial position. At the time, BSP only had P10 billion of the mandated P50 billion capitalization it should have. It was the Aquino administration that finally remitted P40 billion cash in BSP after almost 20 years of waiting. When the BSP was established in 1993, replacing the old Central Bank of the Philippines, an initial P10 billion was deposited as capital. The next P10 billion was released to the BSP 18 years later in 2011 when Aquino was the president.
The BSP also remembers Aquino as BSP’s biggest supporter in its ambitious financial inclusion programs.
“In June 2016, he signed the law institutionalizing the Financial Inclusion Steering Committee, the governing body tasked to implement the government’s National Strategy for Financial Inclusion (NSFI),” said the BSP. The aim of the NSFI is to optimize the country’s collective efforts to promote and implement financial inclusion by raising “awareness, appreciation and understanding” of what it will take to have an inclusive financial system. Today, the Philippines is a global leader in financial inclusion initiatives.
“President Aquino lived a life of service to the country—first, as a member of Congress, and eventually as President of the Republic of the Philippines,” said the BSP.
“He led the nation through six years of sustained growth that helped uplift the lives of the Filipino people. It was under his administration that the Philippines received its first investment grade rating from an international credit rating firm,” said the BSP.
The central bank extends its “deepest condolences” to the family of the late former president.
“We join the nation in mourning his passing and honoring his legacy of democracy, good governance, and accountability,” said the BSP.