BSP’s Espenilla succumbs to cancer

The fourth man at the helm of the Bangko Sentral ng Pilipinas (BSP), Nestor A. Espenilla Jr., who was not an accountant and had been derided for it by an unimportant politician, passed away Saturday night surrounded by family. He was only 60.

“Nesting,” as he was fondly called by colleagues and friends in the financial community, and his passing is deeply mourned.

“I’m deeply saddened by the transition of Gov. Nestor Espenilla. He was an exemplar of a dedicated public servant with high competence and integrity. A big loss to BSP and the country. He’ll be missed,” Socioeconomic Planning Secretary Ernesto Pernia said.

Budget Secretary Benjamin Diokno similarly shared his grief: “It’s indeed a very sad day to see one of the hardworking coworkers in government go. Nesting is one of our illustrious graduates at the University of the Philippines School of Economics. He joined BSP right after his graduation and rose to governorship of the monetary institution after years of effective and excellent service as a banking regulator and anchor of monetary policy.”

Secretary Benjamin Diokno. CONTRIBUTED PHOTO “He is an esteemed member of the Duterte Economic team. We will miss his rigorous analysis of domestic and international economic developments,” he added.

The BSP said that under Espenilla’s leadership, the BSP continued to pursue major reforms under the theme “Continuity Plus Plus,” covering monetary and financial policies, as well as the BSP organizational structure. He also spearheaded the digitalization of the retail payment system in the country for a more inclusive and efficient financial system.

“During his tenure, the amendments to the BSP charter were finally passed, strengthening the capability of the central bank to deliver its mandate to promote price and financial stability and to foster a safe, efficient and inclusive payment system.”

In a special meeting held on the same day, the Monetary Board designated Deputy Governor Maria Almasara Cyd Tuaño-Amador as BSP Officer-in-Charge effective immediately until such time that President Duterte shall have designated an OIC or appointed a successor.

Prior to his appointment as BSP governor, Espenilla was deputy governor in charge of the Supervision and Examination Sector (SES), which supervises banks and non-bank financial institutions under BSP jurisdiction.

“In that capacity, he focused on banking supervision, capital market development, credit policy and financial inclusion. He institutionalized risk-based and proportionate regulations, enabling BSP-supervised institutions to innovate business models and adopt digital financial services. He likewise championed the issuance of regulations that promote financial inclusion and consumer protection. He used to describe himself as ‘homegrown’ having joined the central bank in 1981,” the BSP said.

Former Finance secretary Cesar V. Purisima was similarly “saddened to hear that we have lost a great public servant and a faithful guardian of our economy. Governor Nestor Espenilla was both a product and a promoter of a strong, independent, competent and professional Bangko Sentral ng Pilipinas.”

“In his long career up the ranks of the institution up until reaching the pinnacle as its chief, Gov. Nesting served with integrity and excellence. His lifetime of contributions to our economy has strengthened the banking and financial system, expanded financial inclusion and kept our macroeconomic fundamentals sound and stable. Our country owes a great debt of gratitude to a fine central banker – one whose tenure of service as the BSP’s chief many would agree to be much shorter than we all would have liked. Nonetheless, the legacy of his tireless work lives on in the robust institution he leaves behind. May his family find solace in that truth – my deepest condolences go out to them and his professional family in the BSP.”

The Economic Journalists Association of the Philippines (EJAP) also extended its condolences and urged President Duterte to be very astute and discerning in appointing someone as suitable and committed like Espenilla.

“The (EJAP) mourns the passing of (BSP) Governor Nestor Espenilla Jr., an exemplary public servant who heeded the call of duty even when he was grappling with his own health issues,” the EJAP said in a statement.

“Even as we mourn, we urge President Rodrigo Duterte to ease market uncertainties by promptly filling the void with someone just as suitable and committed to the BSP’s mandate of price and financial stability — one who can hit the ground running and ensure policy continuity,” they added.

Malacañang extended its deepest sympathies to the family, friends and colleagues of the late BSP governor and thanked him for his “complete devotion to his work and great service to the nation.”

Espenilla succumbed to a year-long battle with tongue cancer last Saturday evening.

“We are saddened to learn Saturday night the untimely demise of Bangko Sentral ng Pilipinas Governor Nestor Espenilla Jr.,” presidential spokesman Salvador Panelo said in a statement.

“As we express our condolences to the family, friends, colleagues and loved ones of Gov.

Espenilla, we express our gratitude to the man once in charge of disciplining banks for his complete devotion to his work and great service to the nation,” he added.

Espenilla served the BSP for nearly four decades, having started as a debt analyst in 1982. He worked his way up from the ranks and was appointed Deputy Governor in 2005 and as BSP Governor by President Duterte in 2017.

According to Panelo, Espenilla will always be remembered by every Filipino “for making financial services closer to Filipinos who — we are all aware — transact mostly using non-bank channels.”

Espenilla is credited for making the National Retail Payment System happen and the introduction of InstaPay, an electronic fund transfer system, as well as the PESONet, an automated clearing house, which saw the Philippines’ gradual shift from cash and check-based payments to electronic means.

“His legacy lives on in every effort that we all do to serve the unbanked, uncarded and undeserved Filipinos with digital financial services,” Voyager president and CEO Orlando Vea said.

For the chairman of the House Financial Intermediaries Committee, Henry Ong, “Espenilla’s passing leaves us secure in the thought that the Bangko Sentral now has a revitalized charter and electronic payments has a governing law. Soon, the Islamic Banking Act will also become law.”