Winners of Central Banking Awards 2022

Bangko Sentral ng Pilipians (BSP), the Central Bank of Costa Rica, the East Caribbean Central Bank and De La Rue were winners in four of the Central Banking Awards 2022, presented annually by the Central Banking Journal and which number over 30 categories.

The awards are targeted at the global community of central bankers and the ecosystem of specialised suppliers, and are made to recognise excellence in serving the central banking community and contribution to public service.

The Currency Initiative award went to the BSP for the Cash Service Alliance (CSA), an alliance of the BSP and the Bankers Association of the Philippines that enables commercial banks to share piso banknotes directly between themselves, bypassing the BSP. It is backed by an online facility so that banks can work together to match excess fit note held with banks who need additional notes. It allowed P 302 billion worth of banknotes to be sourced through the CSA between October 2020 and December 2021.

The CSA estimates banks have saved P119 million in operating expenses through the scheme. It also allowed them to operate effectively when the Philippines implemented extremely strict lockdowns between March and May 2021.

The CSA will continue post-pandemic, says the BSP, because it will also be useful during emergency situations, weather disturbances, and localised holidays that affect banking operations.

The Currency Manager award has been made to the Central Bank of Costa Rica (BCCR) for its new banknotes and coins combining environmental protection, aesthetics and security.

Costa Rica is known globally as an ecotourism destination, but paper banknotes are neither easy nor cheap to recycle. In warm climates, paper also tends to wear out more quickly. Since polymer notes are more durable, they need to be replaced less often. Furthermore, they are lighter than their paper equivalents, easing transport (and, therefore, fuel consumption), according to BCCR officials.

The all-polymer new series was rolled out during 2020 and 2021, and a new high denomination coin was also introduced. The notes, produced by Orell Füssli and Oberthur Fiduciaire, are exceptionally attractive and replete with security features, and have already earned the BCCR a number of other awards, including – most recently – the 2021 HSP Regional Banknote of the Year award for Latin America.

The Currency Services Initiative went to De La Rue. The company has had a torrid few years, and has come under severe pressure from some of its shareholders. The arrival of its new CEO, Clive Vacher, and the launch of a restructuring programme through its Turnaround Plan has pulled it back from the brink, says Central Banking.

The company has made major capital investments, including in its thread and polymer facility to double capacity, introduced new security features, rolled out its SAFEGUARD® substrate and is gaining recognition as a leader in corporate climate policy.

The Green award went to the East Caribbean Central Bank for its solar farm, which will enable it to meet its objective of being entirely carbon-neutral in its own operations by the end of 2022.

The central bank serves a currency area comprising six states and two overseas territories, with its headquarters on the largest island in the state of Saint Kitts and Nevis.

The St Kitts premises had previously received all its electricity from the state-owned St Kitts Electricity Company, largely generated by carbon-intensive methods. The ECCB’s leadership decided to cut the premises’ power consumption and install solar photovoltaic (PV) panels to provide power in a series of canopies erected on pillars above cars in the premises’ car park.

The ECCB had now installed over 3,600 solar panels and 20 inverters, at a cost of $4.12 million. In good weather conditions, it can cut its electricity costs by 60% and, as it only consumes 60% of what it generates, the remainder is sent to the national grid. The ECCB is currently installing a battery storage system, which will be complete by the end of the year.