Two Monetary Board seats now vacant

MANILA, Philippines — Two new appointees would soon take over the positions of Monetary Board members V. Bruce Tolentino and Anita Linda Aquino as their resignations took effect yesterday.

The resignations were earlier confirmed by sources within the Bangko Sentral ng Pilipinas (BSP), marking a huge shakeup in the country’s monetary policy leadership.

Malacañang has yet to issue an official statement regarding the resignations. However, the BSP earlier said the Monetary Board would function as normal as long as the board can continue to perform most of its duties provided there is a four-member quorum and the rest of its duties such as granting emergency loans, with five members.

According to sources, President Marcos may soon announce two bankers as new members of the Monetary Board. This is to diversify the seven-member policy arm of the central bank, which is mostly composed of economists currently.

Names going around the banking community as possible next members also include a seasoned investment banker, a banker who is currently a director of another government institution, an economist and a former deputy governor of the BSP.

The Monetary Board is the policy-making body of the BSP, responsible for formulating monetary policy to achieve price stability conducive to a balanced and sustainable economic growth.

With the resignation of Tolentino and Aquino, the Monetary Board is now left with BSP Governor Eli Remolona Jr., Finance Secretary Ralph Recto, Benjamin Diokno, Rosalia de Leon and Romeo Bernardo.

Security Bank senior assistant vice president and chief economist Robert Dan Roces said it is a significant development to have all seats of the Monetary Board be filled with appointees from the current administration.

“This could potentially have implications for the future direction of monetary policy, as different administrations often have differing priorities and approaches,” he said.

Roces also said the next two members of the Monetary Board should have a diverse set of expertise that they could bring on the table.

“While economists bring a deep understanding of macroeconomic principles, having a banker on the board could provide valuable insights into the practical realities of the financial system and the challenges faced by banks,” he said.

“Ultimately, the ideal candidate would be someone with a strong understanding of economics and finance, a proven track record in their field and a commitment to promoting financial stability and growth in the country.”

He added that it would be important to have a balanced Monetary Board that represents a variety of perspectives and experiences to ensure effective decision-making regarding the country’s monetary policy.