It was business as usual for banking sector
By Ted P. Torres
The Philippine Star 02/25/2006
Banking operations in Metro Manila remained normal yesterday even as President Arroyo declared a state of national emergency following reports of a brewing coup against her administration.
However, some banks decided to suspend operations after three in the afternoon. Banking operations are also suspended today, a non-working holiday.
Despite widespread protest rallies by political and civic groups, some bankers viewed these as an expected knee-jerk reaction to the declaration of a state of emergency.
State-owned Development Bank of the Philippines (DBP) president and chief executive officer Rey G. David said it was a normal reaction by the markets. He said that the sooner the conditions normalize, the sooner the markets will get back on track.
"People are taking cover from their long exposures due to the uncertainties. Others who are short in foreign currency like the US dollar are covering their tracks, clearing their long positions," the DBP official said.
He added foreign investors are also unloading "for lack of grasp of the situation and the uncertainties."
But most bankers and financial experts said the fundamentals of
the Philippine economy remain on solid ground coming off a gross domestic product (GDP) growth of five percent last year.
"Without the political tensions, the economy is definitely poised to take off," said Melvin Jao Estebank, vice president of the Philippine American Life and General Insurance Co. (Philamlife).
PhilEquity Management Inc. vice president Jerome R. Gonzalez said while the business community already anticipates the growth of the Philippine economy this year, he admitted that there could be concerns over the political uncertainties.
"We are concerned but business will always look at the bigger picture," Gonzalez said.
Antonio Moncupa, executive vice president of the International Exchange Bank (iBank) said the peso weakened yesterday due to the new political developments. But he saw no reason for the peso to weaken beyond the 52 to 53 to thedollar level.
"It will not return to the 56 level as the fundamentals are highly positive, assuming that the political situation normalizes immediately," Moncupa added.
By Ted P. Torres
The Philippine Star 02/25/2006
Banking operations in Metro Manila remained normal yesterday even as President Arroyo declared a state of national emergency following reports of a brewing coup against her administration.
However, some banks decided to suspend operations after three in the afternoon. Banking operations are also suspended today, a non-working holiday.
Despite widespread protest rallies by political and civic groups, some bankers viewed these as an expected knee-jerk reaction to the declaration of a state of emergency.
State-owned Development Bank of the Philippines (DBP) president and chief executive officer Rey G. David said it was a normal reaction by the markets. He said that the sooner the conditions normalize, the sooner the markets will get back on track.
"People are taking cover from their long exposures due to the uncertainties. Others who are short in foreign currency like the US dollar are covering their tracks, clearing their long positions," the DBP official said.
He added foreign investors are also unloading "for lack of grasp of the situation and the uncertainties."
But most bankers and financial experts said the fundamentals of
the Philippine economy remain on solid ground coming off a gross domestic product (GDP) growth of five percent last year.
"Without the political tensions, the economy is definitely poised to take off," said Melvin Jao Estebank, vice president of the Philippine American Life and General Insurance Co. (Philamlife).
PhilEquity Management Inc. vice president Jerome R. Gonzalez said while the business community already anticipates the growth of the Philippine economy this year, he admitted that there could be concerns over the political uncertainties.
"We are concerned but business will always look at the bigger picture," Gonzalez said.
Antonio Moncupa, executive vice president of the International Exchange Bank (iBank) said the peso weakened yesterday due to the new political developments. But he saw no reason for the peso to weaken beyond the 52 to 53 to thedollar level.
"It will not return to the 56 level as the fundamentals are highly positive, assuming that the political situation normalizes immediately," Moncupa added.
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