The Market Monitor Minding the Nation's Business
Higher revenues and reduced expenses boosted the Bangko Sentral ng Pilipinas’ (BSP) net income to P15.26 billion in 2016 as of last October.
BSP data showed that its revenues in the first 10 months amounted to P62.33 billion, 30.2 percent up than the P47.87 billion a year ago.
Part of this is half of the P1 billion supervisory action slapped against Rizal Commercial Banking Corp. (RCBC), paid last August, in connection to the Bangladesh Bank cyber heist last February.
Expenses, on the other hand, declined by 2.3 percent to P58.49 billion against year-ago’s P59.9 billion.
Among the central bank’s expenses are losses from foreign exchange operations in the BSP’s infusion of foreign currencies to address extreme volatilities in the exchange rate.
The peso started the year at 47-level but is currently trading at the 49-level to a US dollar due to developments surrounding the Federal Reserve rates, which was hiked by 25 basis points to 0.5- percent and 0.75 percent mid this month, among others.
BSP Deputy Governor Diwa Guinigundo said the exchange rate is normally the BSP’s first line of defense in adjusting to new shocks on the currency and the economy.