Hong Leong Bank
From Wikipedia, the free encyclopedia
Hong Leong Bank is a bank in Malaysia.
Hong Leong Bank began its operations in 1905 in Kuching, Sarawak under the name of Kwong Lee Mortgage & Remittance Company. It was founded by Mr. Lam Ting Yeu. The company granted loans against the security of export commodities such as pepper, rubber and other indigenous products. It also provided the services of remitting money of overseas Chinese to their families in Southeast region of China.
[edit] Sarawak
In the initial years, the company went through a difficult period of growth when a number of economic crises occurred. The First World War broke out in 1914 causing panic in the financial circles. A few years after hostilities ended, the Post-war Recession of 1920-1921 set in. After the Recession, the company opened its branch in Sibu in 1923 and three years later another branch was opened in Singapore in 1926. The year 1929 saw the start of the Great Depression that lasted until 1933. The Depression caused a sharp fall in the export earnings of commodities and many business concerns, including some banks, were in financial difficulties.
Kwong Lee Mortgage and Remittance Company survived all these setbacks because of its strong cash reserves and its conservative operational policy. Immediately after the Depression, on 26 October 1934, the company was converted into a public company under the name Kwong Lee Bank and shortly after, the third branch of the Bank was opened in Sarikei in 1937.
The Second World War caused a temporary disruption in the currency and banking system. After the war the immediate task was one of reconstruction and rehabilitation. In this connection, Kwong Lee Bank played an important role to revive confidence and business activities by providing financing to enable old businesses to be resumed and new ones to be set up. The aftermath of the war saw the continued expansion of the Bank, and another branch was opened in 1973 in Bintangor.
[edit] Expansion in Malaysia
In the late 1977, Yang Amat Mulia Tunku Osman Ibni Tunku Temenggong Ahmad, a member of the royal family from the State of Johor, took over the control of the Bank and changed the direction of its expansion. From four banking offices in Sarawak and one in Singapore, the Bank expanded its operations to Peninsular Malaysia when it opened its first branch in Kuala Lumpur in May 1978 and this was followed by another branch in Johor Bahru during the same month. Over the next four years, a total of six branches were opened in Labis, Segamat, Bintulu, Kota Tinggi, Kota Kinabalu and Kluang and on 1 January 1982, the Head Office was relocated from Kuching to Kuala Lumpur.
Kwong Lee Bank Berhad was acquired by the MUI Group in May 1982 and renamed Malayan United Bank Berhad on 2 February 1983. Later it was renamed MUI Bank Bhd. Under the MUI banner the Bank grew from 11 branches (including Singapore) to 35 branches.
On 3 January 1994, the Hong Leong Group Malaysia acquired MUI Bank Berhad through Hong Leong Credit Berhad and renamed it as Hong Leong Bank Berhad (HLBB). HLBB was listed on the Kuala Lumpur Stock Exchange on 17 October 1994 with its total paid–up capital enlarged to RM 470 million. Since then, the growth of the Bank has been remarkable.
The consolidation of the banking institution to meet the requirements of Bank Negara Malaysia marks another milestone for Hong Leong Bank Berhad. The completion of the merger of Hong Leong Bank with Wah Tat Bank and Hong Leong Finance with Credit Corporation Malaysia on 1 January 2001 marks the emergence of a larger banking group.
HLBB is a member of the Hong Leong Group. The Group has diversified businesses in financial services, manufacturing, property and infrastructure development.
