The banking community remains anxious on who will be the next 501 resident as it will be less than three weeks before the term of incumbent Bangko Sentral ng Pilipinas (BSP) Governor Felipe M. Medalla expires.
While Malacanang continues to dish out, in the last three days, a number of appointments, both promotions and new members of the Cabinet, among them the two Teodoros – the first one is Dr. Teodoro Herbosa as Health secretary and the other Gilberto C. Teodoro, Jr. taking the helm of the Defense portfolio, nothing is said about the chosen one for the BSP.
Based on my recollection, this would be the longest waiting game ever for the market. Gov. Philip was named the successor of Benjamin “BED” E. Diokno, who crossed over to the Department of Finance on June 4, 2022. And the late Nestor A. “NAE” Espenilla was appointed on May 8, 2017. BED succeeded March 4, 2019.
Eager as they are, both the banking and the business community have been riled up by the disclosure over the weekend of Finance Secretary BED on who he believed must be the resident of 501.
Disregarding virtually the reappointment of the incumbent, the new BSP Governor must be an economist with international stature and more importantly, not an ex-banker.
My muted Palace source noticed “there was animosity in the air” between the two gentlemen during the launch of the commemorative coin for the country’s 125th Anniversary of Philippines Independence held at the Ceremonial Hall.
As he may have the President’s ear, SecFin BED submitted three names. Of the three, my lion ears heard the names: Monetary Board (MB) member Eli Remolona and BSP Deputy Governor for financial inclusion and regional operations Bernadette “Berna” Romulo-Puyat, who has gained the moniker Madame QR code.
The third candidate is Jose Arnulfo “Wick” Veloso, who is the incumbent president and general manager of state-pension fund Government Service Insurance System.
Taking cognizance of the qualifications spelled by SecFin BED, the market is looking at Mr. Eli as the prospective successor, possessing all three: international stature, not an ex-banker and a seasoned-economist.
As I’ve said Mr. Eli, whose term as MB member expires along with Gov. Philip on July 3, may be relatively new in government service but his extensive knowledge and experience in international policy and central banking are beyond compare.
The be-dimpled Mr. Eli, who enjoys going to weekend Legaspi organic market with his wife, Marie, brings with him his experiences as a central banker with the Federal Reserve Bank of New York and the Bank for International Settlements in Basel and in Hong Kong.
Some sectors believed DepGov Berna as the “dark horse” but of the three qualifications, she possesses only two: an economist and not a banker. She had limited exposure in private banking simply because her late husband David Puyat was senior vice president and corporate secretary of then Manila Banking Corporation.
And as we all know, Mr. Wick is a veteran banker. Yes, he has international stature having been the country head and chief executive officer of HSBC Philippines that has handled a number of the country’s international fund-raising activities.
I am not writing off nor rooting for any of the three candidates. I have my biases but my lips are sealed. Are we going to have the country's first woman governor? Will it be the veteran banker, who some say may end up as an MB member?
As the wheels of business continue to churn, the banking community is anxious, waiting with bated breath, who is the rightful choice that would steer the BSP, believed to be a bastion of stability in governance, in the next six years.
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