Consing to lead BPI’s integration to Asean market

MANILA, Philippines - The appointment of a seasoned global banker  at the helm of the Bank of the Philippine Islands (BPI) will pave the way for the Ayala-led bank’s rise as one of the leading players in the Asean region, the lender’s top executive said.

The BPI board has tapped Cezar Consing to succeed Aurelio Montinola III as BPI president and chief executive officer by April next year.

“Yes, the appointment by the (BPI) board of Mr. Consing is in preparation for the regionalization of banking today,” said Montinola, who has headed BPI for the past eight years.

He cited Consing’s close ties with other banks in the region such as in Malaysia and Thailand would be a major factor in carrying out BPI’s regional integration plan.

Consing presently sits in the BPI board as an independent director representing The Rohatyn Group, a $3-billion international hedge fund and private equity firm focused exclusively on emerging markets.

He has over 25 years of experience in international finance, particularly in investment banking, commercial banking, and private equity, having worked with JP Morgan, Chase Manhattan, Jardine Fleming,  and Malaysia’s CIMB Group.

The Association of South East Asian Nations (Asean) is pursuing a comprehensive integration towards an open, dynamic and resilient community by 2020.

Thus, regional integration means banks in the Asean member nations can establish presence in any other member’s market.

From 2015, the top five banks in the Philippines will be required under the Asean Framework Agreement on Services (AFAS) to be involved in actual “open market” conditions.

Montinola said in a press briefing yesterday that the volume of trade among Asean member states is already equivalent or almost as large as that of the euro zone. But since the euro zone is experiencing one of its worst economic crisis, the role of the Asean to the global economy has become even more valuable.

However, Montinola explained that BPI has limited relationships with Asean banks, having concentrated on Japan, Hong Kong, Singapore, Europe and the Americas.

Hence, he said this brings into the picture the regional expertise and professional relationship of Consing.

“We all started out together at BPI. He was in-charge of the commercial banking unit, major multinational and local corporations, so his corporate banking skills are quite strong,” Montinola said.

“Mr. Consing joined JP Morgan as a trainee, and ended up being hired, and you know what JP Morgan is all about. I think what’s the positive side is he, at one point in time, was among one of the highest ranking Asians in JP Morgan.”

Montinola said that the more prudent measure for banks is to establish strong correspondent relations with the major players, rather than enter the country and start their own business.

Some of the major Philippine banks already have existing correspondent relationships with other regional players, although a significant chunk has to do with remittances from migrant or overseas Filipinos.