Tetangco may serve a third term as BSP chief

Bangko Sentral ng Pilipinas (BSP) Gov. Amando Tetangco Jr., if he accepts, has been given a guarantee of an unprecedented third term in office with the lifting of the term limits for BSP chief provided for under the law, having gained the full trust of President Duterte and of the banking and finance sectors in the country.

Eastern Samar Rep. Ben

Evardone, chairman of the House Committee on Banks and Financial Intermediaries, gave the assurance as he disclosed that the House panel has unanimously endorsed enactment of House Bill 4283, the consolidated bill amending Republic Act No. 7653 or the New Central Bank Act.

Evardone vowed to propose the lifting of the two-term limitations for BSP governor when the consolidated bill is presented for plenary approval in January.

While the consolidated bill endorsed for plenary action does not provide for another term extension, Evardone said he will move for its inclusion during the committee amendments segment of plenary action on the measure.

“Tetangco has been doing very well as BSP governor. We need continuity and stability in these times of uncertainties in the global financial markert,” said Evardone.

The senior administration lawmaker also cited Tetangco’s efforts in “containing inflation and in stabilizing the peso.”

“I will propose a third and final term for Governor Tetangco as part of a committee amendment to the bill amending the BSP law,” Evardone said.

He also noted that under Tetangco’s watch, the peso has become more resilient than other currencies such as China’s yuan.

Evardone urged the House leaderhsip to place HB 4283 in its list of legislative priorities next year in order that Tetangco can be given a third term as BSP governor.

Unless the BSP Charter is amended, Tetangco will step down as top monetary manager of the country in July, 2017.

He is the only central bank governor to have his term extended. He took over the helm of BSP in 2005 under then President Gloria Macapagal Arroyo and was extended in 2011 by then President Benigno Aquino III.

HB 4283 consolidates five bills providing for amendments to the BSP charter. The legislative proposals were filed by Reps. Maximo Rodriguez (PDPLaban, Cagayan de Oro City); Henry Oaminal (LP, Misamis Occidental); Jericho Nograles (PBA Party-list); Ma. Theresa Collantes (LP, Batangas) and Evardone.

Rodriguez, author of HB 4620, proposed the lifting of term limits for members of the Monetary Board currently headed by Tetangco.

He said the exemplary job demonstrated by key members of the monetary board provides the best argument against imposition of term limits.

“Many foreign investors have been saying that when it comes to maintain- ing investor confidence in the country, the key to keeping them here is having reputable names as finance chief and BSP governor,” explained Rodriguez.

Evardone said the amendments proposed in the consolidated bill will “ensure that the BSP shall remain effective in its conduct of monetary policy and supervision of entities within the financial system.”

Proposed under the bill are the infusion of additional capitalization of 1150 billion for the BSP and the restoration of its tax exemption privilege.

To strengthen BSP‘s financial stability function, the bill provides for the expansion of its supervisory authority to include additional categories of financial institution and the formal recognition of the financial stability in BSP mandate.

The bill also seeks to strengthen monetary stability function of the BSP by restoring its authority to obtain data from any private person or entity and by removal the threshold in the growth of monetary aggregates and credit as building principles in monetary administration.

It also proposes the restoration of the BSP authority to issue negotiable certificates of indebtedness even during normal times.