Last October 3, 2008, the Money Market Association of thePhilippines, together with other financial organizations – ACI Philippines, Trust Officers Association of the Philippines and the Investment Houses Association of the Philippines, held a joint general assembly at the ballroom of the Hotel Intercontinental Manila. The meeting was a timely and a much anticipated one by the market players as during the last few weeks the market has seen not only the health of financial markets, but economies around the world be put on the balance with all the recent developments caused by the U.S. sub-prime mortgage crisis. Moreover, with the guest speaker being the Bangko Sentral governor Amando Tetangco, much more interest was incited among the market players, as everyone was keen on hearing first hand how the national government plans to address these matters. 

In his address, Gov. Tetangco emphasized the minimal exposure of Philippine banks to Lehman Brothers credit default obligations, mentioning that if one is to sum up the total exposure of the Philippine banking industry to Lehman CDOs, it would only comprise 0.4% of the industry’s total assets. On the government’s stance on monetary policy, Gov. Tetangco reiterated their continued focus on inflation targeting. According to Gov. Tetangco, although inflation may have already reached its peak and may eventually reach single-digit levels by the 1Q of 2009, the government would still gear their policies towards combating inflation. On the availability of liquidity for the local market, Gov. Tetangco acknowledged the significant amount of money market funds parked in the BSP. He said that if developments would signal the requirement of a liquidity infusion to the market, then that would be the time they would address the issue in their monetary policy, but currently they don’t see it as necessary. On a lighter note, a question was raised on the apparent shortage of 1-Peso coins in circulation. The governor said that personally he is not surprised, as Filipinos would normally keep their coins in coin banks and in the dashboards of their cars. He said this practice further contributes to the shortage caused by the smuggling of the coins (smelted for its nickel content), as the value of the nickel is worth more than the coin’s intrinsic value. 

The event was also highlighted by the induction of the members of the newly created MART Board of Advisers. The board was created to provide guidance, particularly during critical times, wherein decisions have to be made in light of developments that would significantly impact the market and the everyday investor. The members were former MART presidents, chosen for their experience and leadership – qualities they exemplified that have throughout the years established MART as one of the country’s leading financial organizations. Inducted were:

 

            1 .Ursula A. Alano – Senior Vice-President, Banco de Oro UniBank

            2. Benedicto Jose R. Arcinas – Treasurer, Export and Industry Bank

            3. Asterio L. Favis – Executive Vice-President, Sterling Bank of Asia

            4. Ricardo L. Fernandez – President, Unicapital Inc.

            5. Erwin S. Mutuc – formerly of Multinational Investment Bancorporation