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<img src="https://cdn.kahimyang.com/resources-25/pnb-building-1940.avif" alt="PNB Building" loading="lazy" />
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(Philippine National Bank (Masonic Temple) along Escolta from north end of Santa Cruz bridge, Manila in 1940).  Source: 
<a href="https://www.flickr.com/photos/johntewell/" class="news-link-ext" target="_blank" rel="noreferrer">John Tewell</a> Flickr account.)
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<h3>
Early Beginnings (1916–1940)
</h3>
<p>
PNB was established on July 22, 1916, under Public Act No. 2612, enacted by the Philippine Legislature during the American colonial period. It replaced the government-owned Agricultural Bank, with an initial capital of ₱1,000,000, equivalent to ₱494,826,983 in 2021 values. The bank's primary mandate was to provide financial services to support agriculture, commerce, and industry, while also serving as a depository for government funds. Its first head office was located at the Masonic Temple along Escolta, Manila, known as the <i>"Wall Street of the Philippines"</i> at the time. <a href="https://en.wikipedia.org/wiki/Henry_Parker_Willis" class="news-link-ext" target="_blank" rel="noreferrer">Henry Parker Willis</a>, an American economist, served as its first president, playing a key role in shaping its early operations.
</p>
<p>
PNB quickly expanded, opening its first branch outside Manila in Iloilo on July 24, 1916, and entering international banking with a branch in New York City in 1917, followed by Shanghai in 1918. However, the bank faced significant challenges early on. In 1921, it nearly went bankrupt due to mismanagement and the weak American colonial structure. <a href="https://kahimyang.com/articles/3219/today-in-filipino-history-may-18-1861-venancio-concepci-n-was-born-in-alaminos-pangasinan" class="news_link">Venancio Concepcion</a>, the bank's president at the time, was indicted for corruption, leading to the <a href="https://kahimyang.com/articles/3202/how-the-1919-1922-financial-crisis-shaped-the-philippines" class="news_link">1921 financial crisis of the Philippines</a>, a notable event in the country's economic history.
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<p>
Despite these setbacks, PNB continued to function as the de facto central bank, with powers to issue circulating notes, a role it maintained until 1949. It supported key export industries like sugar, copra, coconut oil, Manila hemp, and tobacco, which were in high demand during <a href="https://en.wikipedia.org/wiki/World_War_I" class="news-link-ext" target="_blank" rel="noreferrer">World War I</a>, helping to drive economic development.
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July 22, 1916: the Philippine National Bank was Established