The Ho Hong Bank (1917 - 1932) was a Malayan bank, established to provide banking services that, until 1912, were solely delivered by European banks.[1] The bank was founded in 1917 and in 1932 merged with two other banks in Singapore to form the Oversea-Chinese Banking Corporation .
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The founders of Ho Hong Bank were Lim Peng Siang, Dr. Lim Boon Keng and Seow Poh Leng, all of whom were, before that time, officers of the Chinese Commercial Bank.
The Chinese Commercial Bank, founded with a paid up capital of $1 million in 1912 by Dr. Lim Boon Keng, Lim Peng Siang, Lee Choon Guan, Tan Cheng Siong and others, had experienced a run on the bank which forced its closure just two years after it began business.[2] Dr. Lim Boon Keng arranged an interview with Sir Arthur Henderson Young (1854-1938), Governor of the Straits Settlements. Before the interview, Seow Poh Leng was called on to produce a balance sheet within 48 hours, which he did until he fell from sheer exhaustion. Following the interview and review of the Bank's balance sheet, Sir Arthur ordered the following proclamation:
"The Government has undertaken to look into the position of the Chinese Commercial Bank with a view to lending it money, but before doing this the Government must examine the Bank's accounts and during this examination the Bank will be closed."
Two weeks later the Government made another proclamation:
"The Government has examined thoroughly the accounts of the Chinese Commercial Bank, and finds that its assets exceed the liabilities. The present trouble is due partly to the fact that many traders are hoarding their money instead of paying it into the Bank. If the Bank is able within a reasonable time to raise cash, Government will certainly lend it a sum of money equal to the amount so raised"
Although the Bank was quickly reopened on the 1st of October 1914, and public confidence restored, due to complaints from Tan Cheng Siong and other shareholders, Lim Peng Siang resigned.
In 1917, together with Dr. Lim Boon Keng and Seow Poh Leng, he set up the Ho Hong Bank with a capital of $3.5 million (£40406,976 half of which was paid-up) which grew to $4 million (£465,116 fully paid-up) by 1920 and over $6 million by 1931.[3][4] Lim Peng Siang became the Chairman of the new Bank with Lim Peng Mau as Managing Director, Seow Poh Leng as General Manager and Secretary, Mah Kee Keng as Head of The Business Department, Tan Eng Hin as Manager of the Malacca Branch and Tan Chin Tah as Sub Manager of the Muar Branch.[5]
Seow Poh Leng focused his efforts towards bringing the Ho Hong Bank in line with the well-established "exchange banks" of the Straits Settlements and relying solely on his own study and observation cautiously began foreign exchange activities. He was joined in his efforts, in 1923, by Dr. H. L. Huang who had existing practical exchange experience.
The Ho Hong Bank was the first Chinese bank in Malaya to engage in international banking. Ho Hong Bank enhanced its foreign exchange business by establishing branches in Hong Kong and later Shanghai. This, together with close co-operation of the South East Asian (Nanyang) offices and correspondents transformed this local bank into an important exchange bank in Shanghai, Hongkong and Malaya.[6][7][8]
The opening of the Shanghai office offered opportunities to send Bank staff there to experience modern exchange operations, a far-sighted policy, the brainchild of Lim Peng Siang and Seow Poh Leng. Among those sent over to learn under the program implemented by Ko Leong Hoe and Dr. H. L. Huang, were, Tan Eng Hooi, Tan Eng Leong, Chua Keh Hai, Kwa Siew Tee, Hooi Yip Beng, Tan Chwee Lee and Yeo Tiam Siew.[9]
Consequential to the great depression, the Ho Hong Bank merged in 1932 with the Oversea-Chinese Bank (OCB) and the Chinese Commercial Bank (CCB) to form the Oversea-Chinese Banking Corporation (OCBC).[10]
One of the founders, Lim Peng Siang or Lin Bengxian (1872 - 1948) was also the owner of the Ho Hong steamer company that operated from Xiamen. In the Hokkien (Minnan) dialect the name Ho Hong means "good winds". The allusion here is to the trade winds that pre-steamer sailors depended on when sailing for trade.[11]