In the local dialect, it’s referred to as “utang na loob!”

Debt of gratitude is an inherent Filipino trait, the cultural value of which has been instilled to us by our forebears. In this cut-throat environment, some, though, tend to disregard this peculiar quality in the furtherance of their business.

This capsulized what I believed happened to the easing out of Philippine National Bank (PNB), a universal lender owned by cigarette tycoon Lucio Tan, as the payroll account handler of the Bangko Sentral ng Pilipinas (BSP).

Reminds me of the Korean telenovela “While you were sleeping,” which stars the youngest runway model turned actor Lee Jung-suk, something momentous happened that changed the life of those involved and/or affected. Like in the series, quietly, in the still of the night, the BSP dropped PNB as the payroll handler of more than its 5,000 workforce.

Voila, it’s now being serviced by the Land Bank of the Philippines.

This so-called momentous decision that happened, in relative calmness, sometime in November last year sent shockwaves to most of the BSP staff, including the retirees that have maintained their accounts with PNB.

Then, there’s the issue of going through a gauntlet because of the intra-zonal security measure. At the third floor bridge that connects the BSP-Department of Finance (DOF) buildings has a sentinel, one had to pass through security check-ups going to and fro.

I fully understand the enforcement of this strict measure but it’s a bit cumbersome, specifically for the retirees who would every now and then visit PNB branch at the ground floor of the BSP multi-storey building.

From what I heard along the BSP-DOF corridors the justification for the easing out of PNB is that it’s no longer a government-owned bank. True but then again, do I take it to mean that PNB, a private universal financial institution has been delisted as an accredited government depository bank? Therefore, the shift to the Land Bank?

One of the lessons I’ve learned from the late BSP Governor Gabriel “Gabby” C. Singson, private banks with exposures or substantial lending to local government units and their instrumentalities/entities, can be accredited as government depository banks. This means they could service accounts of government institutions and corporations. Did the BSP change one of its criteria on accreditation?

Millennials are not aware of this but back then the salary as well as bonuses were handled out/distributed by the payroll master in a sealed envelope. The enormity of the amount plus the administrative work, not to mention the threat to security, sparked an agreement between PNB President Panfilo “Pio”Domingo and Central Bank Gov. Jaime C. Laya which allowed PNB to handle its payroll account. 

Truth be told. All of us should be thankful and grateful to PNB, the author of ATM payroll accounts. Gov. Gabby, who was Gov. Jimmy’s deputy and the general counsel in 1983, as well as Governor Amando “Say” Tetangco, Jr. knew to heart this little known PNB-Central Bank deep-seated relationship. “Utang ng loob” virtue comes into play.

The banking system owes a debt of gratitude to PNB for taking the lead that revolutionized the payroll system of BSP and other government agencies/offices followed in conformity.

But, this is how the wheels of competition churned.

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