Hong Leong Bank
Encyclopedia
Hong Leong Bank is a bank in Malaysia.
Hong Leong Bank was founded by Mr LAM Ji Chiew and began its operations in 1905 in Kuching
, Sarawak
under the name of Kwong Lee Mortgage & Remittance Company. 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
.
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
.
, 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.
part of Hong Leong Bank Group.
Hong Leong Bank was founded by Mr LAM Ji Chiew and began its operations in 1905 in Kuching
Kuching
Kuching , officially the City of Kuching, and formerly the City of Sarawak, is the capital and most populous city of the East Malaysian state of Sarawak. It is the largest city on the island of Borneo, and the fourth largest city in Malaysia....
, Sarawak
Sarawak
Sarawak is one of two Malaysian states on the island of Borneo. Known as Bumi Kenyalang , Sarawak is situated on the north-west of the island. It is the largest state in Malaysia followed by Sabah, the second largest state located to the North- East.The administrative capital is Kuching, which...
under the name of Kwong Lee Mortgage & Remittance Company. The company granted loans against the security of export commodities such as pepper
Black pepper
Black pepper is a flowering vine in the family Piperaceae, cultivated for its fruit, which is usually dried and used as a spice and seasoning. The fruit, known as a peppercorn when dried, is approximately in diameter, dark red when fully mature, and, like all drupes, contains a single seed...
, rubber
Rubber
Natural rubber, also called India rubber or caoutchouc, is an elastomer that was originally derived from latex, a milky colloid produced by some plants. The plants would be ‘tapped’, that is, an incision made into the bark of the tree and the sticky, milk colored latex sap collected and refined...
and other indigenous products. It also provided the services of remitting money of overseas Chinese to their families in Southeast region of China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
.
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 SingaporeSingapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
in 1926. The year 1929 saw the start of the Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
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
Bintangor, Sarawak
Bintangor is a town, and the capital of the Meradong District in Sarikei Division, of Sarawak, East Malaysia situated along the Rejang River. There were express boat services connecting between Bintangor, Sarikei and Sibu town in the 70s and 80s. Now road connections between these towns has become...
.
Expansion in Peninsular Malaysia
In the late 1977, Yang Amat Mulia Tunku Osman Ibni Tunku Temenggong Ahmad, a member of the royal family from the State of JohorJohor
Johor is a Malaysian state, located in the southern portion of Peninsular Malaysia. It is one of the most developed states in Malaysia. The state capital city and royal city of Johor is Johor Bahru, formerly known as Tanjung Puteri...
, 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
Peninsular Malaysia
Peninsular Malaysia , also known as West Malaysia , is the part of Malaysia which lies on the Malay Peninsula. Its area is . It shares a land border with Thailand in the north. To the south is the island of Singapore. Across the Strait of Malacca to the west lies the island of Sumatra...
when it opened its first branch in Kuala Lumpur
Kuala Lumpur
Kuala Lumpur is the capital and the second largest city in Malaysia by population. The city proper, making up an area of , has a population of 1.4 million as of 2010. Greater Kuala Lumpur, also known as the Klang Valley, is an urban agglomeration of 7.2 million...
in May 1978 and this was followed by another branch in Johor Bahru
Johor Bahru
Johor Bahru is the capital city of Johor in southern Malaysia. Johor Bahru is the southernmost city of the Eurasian mainland...
during the same month. Over the next four years, a total of six branches were opened in Labis, Segamat, Bintulu, Kota Tinggi, Kota Kinabalu
Kota Kinabalu
Kota Kinabalu , formerly known as Jesselton, is the capital of Sabah state in East Malaysia. It is also the capital of the West Coast Division of Sabah. The city is located on the northwest coast of Borneo facing the South China Sea. The Tunku Abdul Rahman National Park lies on one side and Mount...
and Kluang and on 1 January 1982, the Head Office was relocated from Kuching
Kuching
Kuching , officially the City of Kuching, and formerly the City of Sarawak, is the capital and most populous city of the East Malaysian state of Sarawak. It is the largest city on the island of Borneo, and the fourth largest city in Malaysia....
to Kuala Lumpur.
Kwong Lee Bank Berhad was acquired by the MUI Group
MUI Group
Malayan United Industries Berhad was founded in 1960. The main businesses of the group includes retailing, hotels, food and confectionery, financial services, property, travel and tourism...
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
Hong Leong Group
Hong Leong Group is a conglomerate based in Malaysia. Founded as a trading company in 1963 by Tan Sri Quek Leng Chan, the company controls 14 listed companies involved in the financial services, manufacturing, distribution, property and infrastructure development...
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
Bursa Malaysia
Bursa Malaysia is an exchange holding company approved under Section 15 of the Capital Markets and Services Act 2007. It operates a fully integrated exchange, offering the complete range of exchange-related services including trading, clearing, settlement and depository services.- History :Bursa...
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
Bank Negara Malaysia
Bank Negara Malaysia is the Malaysian central bank. Established on January 26, 1959 as the Bank Negara Malaya, its main purpose was to issue currency, act as banker and adviser to the Government of Malaysia and regulate the country's credit situation...
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.
Acquisition
On 6 May 2011, Hong Leong Bank announced that it has completed its acquisition on EON Capital Bhd's assets and liabilities, making EON BankEon bank
EON Capital Berhad is a company listed on the Main Board of Bursa Malaysia on 23 December 2002. It is the holding company of EON Bank Group...
part of Hong Leong Bank Group.