BSP, analysts welcome new Monetary Board appointment

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP), economists and market analysts have welcomed the appointment of Walter Wassmer as the newest member of the Monetary Board.

Wassmer, as part of the central bank’s highest policy-making body, is expected to uphold the BSP’s priorities in keeping price and financial stability while promoting a safe and efficient payments and settlements systems. 

“Walter Wassmer brings with him decades of banking experience which will prove invaluable to the policy-making body and the decisions of the Monetary Board,” BSP Governor Eli Remolona Jr. said in a statement. 

The new member of the Monetary Board joins Remolona, Finance Secretary Ralph Recto and Monetary Board members Benjamin Diokno, Romeo Bernardo and Rosalia De Leon. 

The BSP said Wassmer would serve the remaining term of former Monetary Board member V. Bruce Tolentino until July 2026. Tolentino resigned from his post effective June 30. 

Wassmer served as a consultant and non-executive director of BDO Unibank Inc. from 2022 to the present before joining the public sector. Previously he served at Far East Bank & Trust Co., UnionBank of the Philippines, Bancom Finance Corp. as well as IFC Leasing and Acceptance Corp.

He got his Bachelor of Science in Commerce degree from De La Salle University and attended the Management Development Program at the Asian Institute of Management.

Security Bank senior assistant vice president and chief economist Robert Dan Roces said it is crucial to maintain a balanced Monetary Board composition that combines academic, policy and industry expertise while prioritizing national economic interests. 

“Wassmer’s experience in institutional banking could offer real-world perspectives on the impact of monetary policies on banks and credit markets,” Roces said. 

China Bank Capital Corp. managing director Juan Paolo Colet said Wassmer is an “outstanding choice” as his private sector experience will add value to BSP’s policymaking and financial supervision. 

“His immediate focus, as with every member of the Monetary Board, will be to decide on the path of monetary policy, particularly when and by how much to cut interest rates,” he said.

“Hopefully he also becomes a strong advocate for reforms needed to develop financial markets, promote economic inclusivity and ensure sustainable banking.”

For the remaining vacant seat in the Monetary Board, Colet said that it would be good if President Marcos would appoint another individual from the financial industry to provide a better blend of backgrounds and viewpoints. 

Regina Capital Development Corp. head of sales Luis Limlingan said that as a member of the Monetary Board, Wassmer should prioritize combating inflation, protecting the peso and continuously strengthening the banking system. 

The BSP faces a delicate balancing act to maintain economic stability while safeguarding against inflationary risks.