WesWorld

Data pertaining to the subject.

Affiliated with the family firm Ayala y Compania

The Bank of the Philippine Islands is the nation’s largest and oldest bank, and one of the oldest of all Asian banks. It offers a full range of commercial and retail financial services, including corporate finance services, asset management and brokerage services. Its network includes branches in the principal cities of the Philippines.

The history of Bank of the Philippine Islands dates to 1851, when Governor Antonio de Urbiztondo y Eguia established El Banco Iberico Filipino de Isabel II; it was housed in the Royal Custom House in Intramuros. A member of the bank’s policy board was Don Antonio de Alaya, and the Alaya family has directed the bank’s growth in the decades since its founding. As the first and only public bank in the Philippines El Banco Iberico Filipino de Isabel II was granted in 1852 the authority to issue the first paper money in the Philippines. Over the years the firm has changed its name – in 1869 it became known as the Banco Iberico Filipino, but with independence the current style was adopted in 1902.

The bank has played a prominent role in financing the development of the Philippines, including financing the nation’s first railroad, its telephone network, its electric utilities and the country’s first steamship service. By 1912 branches had been established in Iloilo, Cebu City, Davao, Zamboanga and Tarlac, and the network has expanded steadily since.

The Philippine National Bank was established as a government-owned banking institution in July 1916. Its primary mandate was to provide financial services to Philippine industry and agriculture and support the Government's economic development effort. The Great War, then raging in Europe, generated huge demand for the country's major exports – sugar, copra, coconut oil, Manila hemp and tobacco. However, little was being done to develop the industries that produced these sought-after crops due to the limited credit facilities available. The establishment of the bank was a great fillip to the growth of nascent industries – the nation’s first shipyards, steel works and ordnance factories all benefited from its existence. The Philippine National Bank also functioned as the nation’s central bank, and in 1917 it was given the special power to issue circulating notes. Domestic branches have been established in Iloilo, Cebu City and Davao, while it is planned to establish a new branch in Zamboanga City to aid in the development of western Mindanao.