By JOSE PAOLO S. DELA CRUZ / Photography by DIX PEREZ
After decades of making his mark in some of the world’s most prestigious financial institutions, this Filipino economist, banker and academic has finally made his way back home, where he now spares no effort in building safe and efficient payments and settlements systems, and ensuring price and financial stability as governor of the Bangko Sentral ng Pilipinas (BSP).
To many, a career like Eli M. Remolona Jr.’s, which includes plum postings at the Federal Reserve Bank of New York and the Bank for International Settlements in Switzerland and Hong Kong, to name a few, is nothing short of a dream come true. But a bigger, more important dream has always resided in this gentleman’s heart — one that only came true when he received news of his appointment as Bangko Sentral ng Pilipinas (BSP) chief a few months back.
“As a product of public education, I have always wanted to serve my country. In fact, I tried to transfer to Hong Kong from the US many years ago just to be closer, just to have a better chance of serving my country. As such, when we learned about my appointment as the BSP chief, my family and I were thrilled and excited about the new role,” Remolona tells PeopleAsia.
And just like his most treasured nugget of wisdom — “Sisig is sisig only if it sizzles,” he says — the BSP chief continues to burn with passion for his job, five months into his appointment.
“When I took the helm at the BSP, I reiterated two key points: pagpapatuloy or building on the progress that we have already made, and pagpapabuti, which means doing even better. This means we will continue delivering our core mandates toward a strong, stable, inclusive and sustainable economy,” says Remolona, who adds that he accepted the BSP governorship “to make a difference by leading an institution that promotes a high quality of life for all Filipinos.”
And how exactly does this veteran economist, researcher and professor intend to do this?
As the country’s central monetary authority and primary financial system supervisor, the BSP supports the economy and promotes a high quality of life for all Filipinos. In line with this, the BSP promotes and maintains price stability, strengthens financial systems, and continues to maintain an environment where a safe and efficient payments and settlements system can flourish.
Together, these contribute greatly to the sustainable and inclusive growth of the economy.
Price and financial stability
Whether in history or the headlines, few things could spark unrest quite as well as the rising prices of commodities — especially when wages do not follow suit.
Remolona, who has previously taught in academic institutions in Malaysia, the United States and the Philippines, adds that ensuring price stability is a priority for the BSP because it “preserves the purchasing power and increases certainty in decision-making of the everyday Filipino.”
Inflation, which was pegged to be somewhere between 5.3 percent and 6.1 percent in September, remains to be one of the biggest challenges for the BSP. Still, the governor is confident that the administration will be able to rein back these figures to its targeted 2.0 to 4.0 percent by the last quarter of 2023, based on data they have at hand.
“We have also been tightening more aggressively than our neighbors and I think that’s the right policy. We are also glad that the national government is implementing non-monetary measures, including importing certain commodities in the right amounts, to address concerns on the supply side,” he shares.
In terms of financial security, Remolona also says that the BSP continues to succeed in maintaining the soundness and resilience of the Philippine banking system. “A sound financial system means consumers can safely entrust their money to the system. Our banks have maintained more than adequate levels of capital and liquidity,” he says.
The BSP is also supporting key legislative measures that will promote integrity and safety in the financial system, such as the Bank Secrecy Law and Financial Accounts Regulation Act (FARA) which is now known as Anti-Financial Account Scamming Act (AFASA) Bill. “These two measures were among the 20 legislative measures approved this July 2023 during the second Legislative-Executive Development Advisory Council meeting presided by President Ferdinand Marcos Jr. in Malacañang Palace for legislative approval before the year ends,” he divulges.
Digital transformation
The BSP is also on a mission to further strengthen the economy by supporting safe and efficient payments and settlements systems. “Our goal is to slowly transition from a cash-heavy to a cash-lite economy. Increased digitalization presents opportunities for efficiency, competitiveness and inclusion. A safe and efficient payment system ensures that consumers can safely pay and receive payments,” says the BSP chief.
Efforts are also being undertaken so that more Filipinos can participate in and enjoy the fruits of economic progress. Guided by the National Strategy for Financial Inclusion 2022-2028 and the Digital Payments Transformation Roadmap 2020-2023, the BSP will further fortify its consumer protection efforts with the enactment of the Financial Products and Services Consumer Protection Act (FCPA).
“The central bank has put in place regulations for consumer assistance and effective adjudication of cases. Our goal is to deepen the trust and confidence of Filipino consumers,” he reiterates.
Further building on the economic team’s inclusive goals, The BSP is also working on deepening the country’s capital markets, by creating additional sources of funding, other than bank borrowings. Capital market development, according to Remolona, is also expected to expand investment options for the Filipino public.
Taking steps a bit further, the country’s premier financial institution has also listed down climate change among its top priorities. “We are advocating a sustainability agenda by investing in measures and projects that protect segments that are most vulnerable to climate events. These include the poor, smallholder farmers, micro and small businesses. We will ensure that the Philippine banking system joins the global fight to slow down climate change,” vows Remolona.
Yes, the list may be long and somewhat intimidating as far as the BSP’s goals are concerned. But with a seasoned economist, researcher, academic and patriot at its helm, the BSP seems poised to accomplish all these items in the next few years.
“It’s a rare opportunity to serve one’s country,” reminds Remolona. “While the job requires considerable time, effort, and energy, I get support from a very capable BSP workforce.”
Indeed, the sisig sizzles in this one.
Shot on location at Teus Mansion, Malacañang / Art direction by Dexter Francis De Vera / Styling by George Palmiano of MGP / Grooming by Eddie Mar Cabiltes
Special thanks to First Lady Liza Araneta-Marcos and Deputy Social Secretary Dina Arroyo-Tantoco
