A tradition of excellence

LAST year had been a great year for the Bangko Sentral ng Pilipinas. And here’s significant proof: BSP Governor Amando Tetangco Jr. has been chosen as the Central Banker of the Year 2013 for Asia-Pacific by an international publication.

The Banker, a monthly publication owned by the Financial Times Group of London, held the Central Banker of the Year Awards to celebrate bank officials who “successfully steered their countries through the economic turbulence of 2012.”

Tetangco joined the ranks of Bank of Canada Governor Mark Carney (Central Banker of the Year 2013 for the Americas), Saudi Arabian Monetary Agency Governor Fahad Al-Mubarak (For the Middle East), Banco Nacional de Angola Governor Jose Massano (For Africa), and Gov. Erdem Basci from Turkey (For Europe).

Basci was also chosen as Central Bank Governor of the Year 2013.

Our very own Tetangco has indeed continued the BSP leadership’s legacy of excellence set by the previous Bangko Sentral governors: Gabriel C. Singson, 1996 and 1997 Central Bank Governor of the Year (Asiamoney); and Rafael B. Buenaventura, 2001 Central Bank Governor of the Year in Asian Region (The Banker).

In 2002 and 2003, Buenaventura was recognized as one of the world’s best governors with Grade “A” rating (Global Finance).

Tetangco, for his part, was also one of Global Finance’s best Central Bank governors in 2006, 2007, 2011 and 2012.

Tetangco was likewise recognized as the 2012 Emerging Markets Central Bank Governor of the Year for Asia.

According to The Banker, the Philippines’ economy has performed strongly in the past year. Its growth in the third quarter of 2012 was the second highest in Asia after China, the London-based publication added.

“Ratings upgrades in the past year have put the Philippines just one notch away from investment grade -- the level of Indonesia -- which the country now has its sights on,” The Banker pointed out.

It added: “The sound monetary policy of the Bangko Sentral ng Pilipinas (BSP) and its governor, Amando Tetangco, has contributed to these improvements that have recently pushed the Philippines into the spotlight.”

To these praises, Tetangco replied, “We are proud to have contributed to the macroeconomic stability that our country now enjoys.”

The article also noted how 2012 was the fourth consecutive year the BSP has kept inflation under target -- as inflation in November 2012 was only 2.8 percent (well within the BSP’s target of 3 to 5 percent).

“Such a benign inflation environment has allowed us to implement monetary policy supportive of economic growth, which was 6.5 percent for the first three quarters of 2012,” Tetangco said.

The BSP, according to The Banker, is presently considering lowering its inflation target range in 2015 to 2–4 percent. This new target range, explained Tetangco, should signal to the market that “we are serious about keeping prices low and stable.”

The Banker also mentioned how the Philippines has been recognized for placing importance on both the stability of the banking system and consumer protection.

Tetangco said of this in the article: “Our banking system has remained sound. It is growing. It is liquid. It continues to intermediate funds to productive use, and its overall balance sheet remains healthy.”

The BSP governor also added that in addition to their work along the traditional pillars of central banking, they have re-energized the Bangko Sentral’s advocacy on financial inclusion, financial education, and consumer protection.

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