THE MONETARY BOARD will benefit from private sector representation as this would bring diversity to its current composition, analysts said,
This, after President Ferdinand R. Marcos, Jr. last week appointed banker Walter C. Wassmer to the Bangko Sentral ng Pilipinas’ (BSP) policy-making body.
Mr. Wassmer previously served as a consultant and non-executive director of BDO Unibank, Inc. He also held positions at Far East Bank and Trust Co. and Union Bank of the Philippines, Inc.), among others.
BSP Governor Eli M. Remolona, Jr. said in a statement on Friday that Mr. Wassmer “brings with him decades of banking experience which will prove invaluable to the policy-making body and the decisions of the Monetary Board.”
The seven-member Monetary Board is headed by the BSP chief. Aside from Mr. Wassmer, its other members are Finance Secretary Ralph G. Recto, former BSP Governor and Finance Secretary Benjamin E. Diokno, former Finance Undersecretary Romeo L. Bernardo, and former National Treasurer Rosalia V. de Leon.
“As part of the monetary authority, the standard goals of macroeconomy have to be achieved. Such goals include price stability by managing inflation through effective monetary policy and economic growth that is faster than population growth through monetary tools,” John Paolo R. Rivera, senior research fellow at the Philippine Institute for Development Studies, said.
Mr. Rivera said Mr. Wassmer’s experience as a banker “may be complementary in achieving these macroeconomic goals.”
Security Bank Corp. Chief Economist Robert Dan J. Roces said that the appointment “underscores the importance of maintaining a balanced board composition that combines academic, policy, and industry expertise while prioritizing national economic interests.”
China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message that Mr. Wassmer’s private sector experience makes him an “outstanding choice” for the Monetary Board.
“It would be good if President Marcos would again appoint someone from the financial industry for the remaining open seat in the Monetary Board to provide a better blend of backgrounds and viewpoints,” Mr. Colet said. “A more diverse membership can help enhance the quality of decision making.”
On the other hand, Leonardo A. Lanzona, Jr., an economics professor at the Ateneo de Manila University, said an economist might be a better fit for the Monetary Board than another banker.
“Economists can provide the necessary insights and recommendations to navigate through crises, whereas a Board member with banking or political experience but without such expertise may be slow to react or implement ineffective measures,” Mr. Lanzona said in an e-mail.
“Economists are often at the forefront of developing new monetary policy frameworks and tools. Without them, a Board member might lack the capacity to innovate and adapt to new economic challenges or shifts in the global economy,” he added. — Luisa Maria Jacinta C. Jocson
