The Bankers Association of the Philippines (BAP) has a more positive industry outlook for 2022 despite lingering pandemic-related obstacles and the challenges of a recovering global and local economy, geopolitical tensions and a new Philippine president by mid-year.
The BAP on Monday, March 21, elected a new set of officers with Antonio C. Moncupa Jr., the president and CEO of East West Banking Corp., taking over from Philippine National Bank president and CEO, Jose Arnulfo A. Veloso.
Moncupa expects 2022 to remain riveting. “With the COVID-19 pandemic, geopolitical tensions, US rate hikes and tapering, global inflation, and a new Philippine president, we have some very interesting days ahead,” he said. Filipinos will elect the 17th president of the republic on May 9.
Veloso, for his part, said despite the continued upheavals of COVID-19, the year 2021 still “delivered a surprise” as the economy ended four quarters in a row of negative domestic growth and closed the year with a decent 5.6 percent GDP growth.
Last year, the banking industry posted combined net profits of P223.66 billion which was up by 44 percent year-on-year. “(Banks) performed even better than expected coming out from the COVID-19 pandemic (and) there is more than enough liquidity to support the borrowing needs of the country and its people as we gear up towards a full economic recovery,” said Veloso. “These demonstrate the banking sector’s resiliency and preparedness built through the years and having survived a number of economic, financial and even geopolitical crises,” he added.
Moncupa said the BAP in 2022 aims to "seek better banking efficiency through modernization that we now call digitalization, better fixed income, foreign exchange and derivatives markets, and safe and trustworthy banking.” All these are “necessary preconditions that improve commerce, create jobs, and increase economic output," he said.
The new BAP chief said the 44-member organization will continue to work “very closely” with the Bangko Sentral ng Pilipinas, the Securities and Exchange Commission, other regulatory agencies, as well as lawmakers for a more “efficient, strong, and well-functioning banking system.”
Veloso said this year and the next “may be uncertain and filled with obstacles” but the banking sector is more than ready to deal with these challenges. “With great confidence, the BAP will continue to be a strong force in the Philippine banking industry for our country and the Filipino people,” he also said.
Meantime, BAP Managing Director Benjamin P. Castillo said the group will continue to coordinate with media groups and social media personalities to intensify its information and education campaign especially on cybersecurity and in the promotion of sustainable finance.
BAP member-banks on Monday also elected the following executives as officers: First Vice President, Cecilia C. Borromeo, President and CEO of Land Bank of the
Philippines; Second Vice President, Hans B. Sicat, Managing Director/Country Manager of ING Bank; Secretary, Sanjiv Vohra, President and CEO of Security Bank Corp.; Treasurer, Jose Teodoro K. Limcaoco, President and CEO of Bank of the Philippine Islands.