A
BRIEF HISTORY OF BANKS IN THE STRAITS SETTLEMENTS AND MALAYSIA 1840 – 1986
by
Saran Singh AMN,
AMP, PNM
INTRODUCTION
After the signing of the Anglo-Dutch Treaty of 1824, Singapore
became an important trading settlement.
It was found necessary to have an efficient banking system to serve the
needs of the rapidly expanding commercial centre of Singapore
which was made the capital of the Straits Settlements.
Attempts had been made to set up a bank in 1833 and 1835
but there were insufficient investors willing to put up the necessary
capital. Finally, a breakthrough was
achieved when the Union Bank of Calcutta opened
a branch in Singapore
in 1840. By 1877, there were seven banks
having their offices in Singapore. These early banks were known as “exchange
banks” since they dealt mainly in foreign exchange to finance external trade
and short term financing. However, some
of the early banks also had bank note issuing powers.
Some of the main functions of banks today are - receiving money for savings, current and
fixed deposit accounts, discounting bills, lending money on short-term,
providing overdrafts, foreign exchange operations, floating and servicing
various loan issues, providing electronic banking services, providing automated
teller services, providing auto-pay services for salary payments and auto-pay
in services for payment of various bills.
Banks also provide personal services to customers and some even act in
an advisory capacity for private businesses and investors.
BANK
NEGARA MALAYSIA
Bank Negara Tanah Melayu was set up in January 1959. One of its main responsibilities is to
supervise all activities of commercial banks in Malaysia through the Banking
Ordinance 1958 which was super-ceded by the Banking Act 1973. With the formation of Malaysia on 16th September 1963, Bank
Negara Tanah Melayu came to be known as Bank Negara Malaysia
(Central Bank of Malaysia). With effect from June 1967, Bank Negara Malaysia has been issuing Malaysia’s currency notes and
coins.
THE
ASSOCIATION OF BANKS IN MALAYSIA
The Association of Banks in Malaysia
was established in November 1973 following the termination of the
Interchangeability Agreement with Singapore on 8th May
1973. Its primary role is to represent
all the commercial banks in all matters pertaining to the banking industry in Malaysia
as well as abroad. As a matter of interest, there were 38 commercial banks in Malaysia
in 1973.
Given below are brief historical details on the various
banks, past and present, which operated or are still in operation in the former
Straits Settlements and Malaysia
up to 1986.
1. UNION BANK OF CALCUTTA, Singapore
Branch
This
was the first bank to open a branch in Singapore in December 1840. Very soon after, this bank issued its first
issue of bank notes which are believed to have been in the denomination of 5,
10, 25, 50, 100 and 500 Spanish Dollars.
Only the 100 Spanish Dollars denominations issued by this bank has been
traced. It’s date of issue is 184~
(unknown), size 16.8 mm x 13 mm and was printed by Smith, Elder & Co.,
Cornhill, London, England. This bank is
believed to have closed a few years later.
2. THE ORIENTAL BANK, Singapore
Branch
(renamed THE ORIENTAL BANK
CORPORATION in August 1851)
This
bank commenced business on 1st May 1846. On 31st May 1849, this bank issued
bank notes for circulation in Singapore. Only two denominations were issued i.e. $5
and $100 bank notes. Unfortunately none
of these early notes have come to light.
The only reference to these notes is an article in The Overland
Singapore Free Press of Friday 1st June 1849. This article states
that these bank notes were printed by the use of elaborately engraved plates on
paper with a peculiar watermark. The
obverse of the bank notes had the inscription “Oriental Bank” and the
denomination ($5 and $100) written in
English,
Chinese, Malay, Bengali and Tamil. This
bank was granted a Royal Charter on 30th August 1851 and its name
was changed to The Oriental Bank Corporation.
The
Oriental Bank Corporation, Singapore
Branch issued bank notes between 1860 – 1875.
A cut Proof $100 bank note exists. This note was printed by Perkins,
Bacon and Company, England
and is undated (Circa 1865). Other
denominations must have been issued but have not surfaced. This bank closed on 18th July
1884.
3. THE
NEW ORIENTAL BANK CORPORATION LIMITED, Singapore Branch
This
bank was formed in 1884 after the collapse of The Oriental Bank Corporation, Singapore. It evidently did prepare at least one bank
note denomination, if not more, for circulation. A $1 Specimen bank note 18--(undated)
exists. The size of this note is 127 mm
x 79 mm and it was printed by Bradbury Wilkinson & Co. Engravers, London. This bank failed in 1892.
4. NORTH
WESTERN BANK OF INDIA, Singapore
Branch
This
bank was established in Singapore
in late 1855. An unissued $100 bank note
of this branch exists, size 205 mm x 130 mm. Other denominations most probably
exist but have not been traced. This
bank closed in 1859.
5. THE
CHARTERED MERCANTILE BANK OF INDIA,
LONDON AND CHINA,
Singapore
Branch
The
Mercantile Bank of India, London and China,
Singapore Branch was opened on 12th
September 1855. It was granted a Royal
Charter in 1858 after which its name was changed to The Chartered Mercantile
Bank of India, London and China.
Two transitional denominations in Proof on card of the $50 dated 18--(dated
April 10th 1861) and the $100 dated 18--(dated April 13th
1861) have been traced. The plates for these notes were evidently prepared
before the bank received its Charter. As
such, the words “The Chartered” were added
above the old name of the bank.
The regular series of bank notes
bearing the denomination $5, $10, $50 and $100 were first issued in August
1861. This was followed by the $25 bank
note in January 1862 and the $500 bank note in December 1864. Bank notes bearing various dates and
signatures were issued by the Singapore Branch up to July 1892.
The Chartered Mercantile Bank of India, London and
China,
Malacca Branch was authorized to
issue bank notes on unstamped paper under the provisions of the Stamp Ordinance
No. II of 1881 vide Government Notification No. 150 dated 5th April
1882 published in the Straits Settlements Gazette. The Malacca Branch issued its first bank
notes from 1881 onwards. The $5, $10,
$25, $50 and $100 on the Malacca Branch of this bank exist. Bank notes bearing various dates and
signatures were issued by the Malacca Branch up to January 1889.
The Chartered Mercantile Bank of India, London and
China,
Penang Branch was opened in
1860. The Penang Branch issued the $5,
$10, $50 and $100 bank notes on 31st December 1861. The $25 note was issued on 10th
March 1862. The Penang Branch issued
bank notes bearing various dates and signatures up to February 1889.
The Chartered Mercantile Bank of India, London and
China
lost its Charter in 1892 and ceased to issue bank notes by February 1893. The name of this bank was later changed to
The Mercantile Bank Limited. In 1959,
The Mercantile Bank Limited became a wholly owned subsidiary of The Hongkong
and Shanghai Banking Corporation. In
January 1974, The Mercantile Bank Limited was integrated under the banner of
The Hongkong and Shanghai Banking Corporation.
6. THE
CHARTERED BANK OF INDIA, AUSTRALIA AND CHINA,
Singapore Branch (now known as THE
STANDARD CHARTERED BANK)
The
Chartered Bank of India, Australia and China
opened its first Agency Office in Singapore on 19th
February 1859 with David Duff as its first Agent. The Agency Office in Singapore was not authorised to
issue bank notes until 20th July 1861 when a Supplementary Charter
raised the status of the Agency Office to that of a Branch with bank note
issuing powers.
To overcome the acute shortage of
paper money in Singapore
between 1859 – 1860, the Agent used his
stock of Post Bills as a form of transitional “Bank Notes”. The Post Bills were payable three days after
sight and were signed by the Agent and the Accountant and later accepted by
them as Agents of the bank. These Post
Bills circulated in Singapore
and performed the functions of a bank note.
The first issue of Post Bills was mad on 1st March 1859. These were signed by David Duff as Agent and
C.S. Sherwood the Accountant. Very soon after, David Duff was dismissed for
exceeding his authority on loans to his friends. C.S. Sherwood was promoted to Agent and G.
Anderson was appointed as Accountant.
Post Bills were hereafter issued on 1st August 1859, 1st
December 1859, 2nd April 1860, 1st July 1860 and 27th
August 1860. About $ 93,500 worth of Post Bills are
believed to have been issued in the following denominations: $5 (300 pieces),
$10 (200 pieces), $50 (500 pieces), $100 (500 pieces) and $500 (75 pieces).
Post
Bills were also issued for Kwala Lumpur and Thaiping (Perak) in denominations
of $5 and $10.
In 1861, the first official bank notes
were issued by the Singapore Branch. They were in denominations of $5 (6,000
pieces), $10 (2,500 pieces), $50 (300 pieces), $100 (100 pieces) and $500 bank
notes were prepared but it is not certain if they were issued. The $20 and $25 denominations were issued
later. Bank notes bearing various dates and signatures were issued by the
Singapore Branch up to 1903.
The Chartered Bank of India,
Australia and China, Penang Branch
started as an Agency Office run by Fraser & Company, Penang in the early 1860s. The bank opened its own branch in Penang in
1875. The Penang Branch issued bank
notes in denominations of $5, $10, $20, $25, $50, $100 and $500. So far, only $5 and $10 denominations have
been traced. The Penang Branch issued
bank notes bearing various dates and signatures up to 1907.
The Chartered Bank of India,
Australia and China relinquished its note issuing rights in 1921 at the request
of the Straits Settlements Government which had been issuing legal tender bank
notes since May 1899.
In 1956, the name of this bank was
changed to The Chartered Bank.
In 1971, The Chartered Bank acquired
The Eastern Bank which used to be located at the Benteng (Embarkment) in Kuala
Lumpur.
In 1984, The Chartered Bank
amalgamated with The Standard Bank of Africa and its name was changed to The
Standard Chartered Bank. In 1986, this
bank had 35 branches throughout Malaysia.
7. ASIATIC
BANKING CORPORATION, Singapore Branch
This
bank opened a branch in Singapore in 1862 and issued its first bank notes in
1864. Specimen bank notes bearing the
denominations of $10, $25, $50, $100 and $500 dated 18-- (undated) exist. All these denominations are 210 mm x 132 mm
and were printed by Smith Elder & Company Engravers, London. This bank closed during the crash of 1866.
8. THE
HONGKONG AND SHANGHAI BANKING CORPORATION, Singapore Branch
The Singapore Branch of this bank was
opened in 1877 and issued its first bank notes on 1st December 1881
vide Ordinance No. X of 1881. This
Ordinance was confirmed by Despatch No. 9 dated 11th January 1882
and published under Proclamation dated 14th February 1882 in The
Straits Settlements Government Gazette.
Bank notes bearing the denominations of $5, $10, $25, $50, $100 and $500
were issued bearing various dates and signatures until 28th
September 1909.
The Hongkong and Shanghai Banking
Corporation, Penang Branch was
opened in 1884 at the request of Major MacNair, officer administrating the
Penang Government. W.A. Gard’ner was
assigned to set up the Penang Branch which was then located in Beach
Street. In 1892, the Penang Branch was
given permission to issue bank notes in denominations of $5, $10, $25, $50,
$100 and $500. So far only the $5 and the
$25 denominations have been traced. Bank
notes were issued by the Penang Branch bearing various dates and signatures
between 1st January 1893 to 28th September 1909.
The Hongkong and Shanghai Banking
Corporation opened a branch in Ipoh in 1909.
Branches of this bank were also opened in Malacca, Johore Bahru and
Kuala Lumpur in 1910.
In 1921, The Hongkong and Shanghai
Banking Corporation relinquished its bank note issuing rights at the request of
the Straits Settlements Government which had been issuing legal tender bank
notes since May 1899.
During the Japanese occupation of Malaya
(1941 - 1945), the Penang Branch of The Hongkong and Shanghai Banking
Corporation was occupied by a Japanese Bank i.e. The Nampo Karhatsu Kinko or
Southern Bank. The banks branches in
Ipoh, Malacca and Johore Bahru were occupied by the Yokohoma Specie Bank.
In 1959, The Mercantile Bank Limited
(formerly The Chartered Mercantile Bank of India, London and China) became a
wholly-owned subsidiary of The Hongkong and Shanghai Banking Corporation.
In January 1974 all branches were
integrated under the banner of The Hongkong and Shanghai Banking
Corporation. In 1986, this bank had 36
branches throughout Malaysia.
9. ALGEMENE BANK NEDERLAND N.V., Penang
(formerly
NEDERLANDSCHE-HANDEL – MAATSCHAPPIJ, N.V.)
The Nederlandsche Handel – Maatschappij, N.V. Bank of
Holland opened its first branch in Penang in 1888. Its main objective was the financing of
international trade. In 1964, the name
of this bank was changed to Algemene Bank Nederland N.V. This bank also had a branch office in Kuala
Lumpur.
10.
KWONG YIK BANKING COMPANY LIMITED, Singapore
This bank, which commenced business in 1903, was the
first Chinese bank in Singapore. The
shareholders of this bank were predominantly Cantonese. The managing director was Wong Ah Fook who
was a leading contractor and gambier planter in Singapore and Johore. From the late 1880s onwards, Wong Ah Fook had
been issuing his own private bank notes which circulated within his numerous
estates. This experience led him to set
up The Kwong Yik Banking Company Limited in Singapore. This bank got into financial difficulties in
early 1913 and was closed soon after.
11. MALAYAN UNITED BANK BERHAD, Kuala Lumpur
(formerly KWONG LEE BANK,
Sarawak)
Kwong Lee Bank, Sarawak, which was incorporated in 1905,
is the oldest local bank in Malaysia.
This bank was acquired by the Malayan United Industries Group in October
1982 and its name was changed to Malayan United Bank Berhad with its head
office in Kuala Lumpur. In 1986 this
bank had 23 branches throughout Malaysia and 1 branch overseas.
12. SZE HAI TONG BANK LIMITED, Singapore
The Sze Hai Tong Bank was founded by members of the
Teochew community in 1907. This bank has
been very solid, sound but over-cautious.
The summary of accounts of this bank for 1952 shows the total assets
as $ 26,335,803 with a
declared dividend of 20%.
13. CHINESE COMMERCIAL BANK LIMITED, Singapore
This bank was incorporated on 1st September
1912. On 31st December 1932
it amalgamated with Ho Hong Bank and the Oversea-Chinese Bank to form the Overseas-Chinese
Banking Corporation Limited.
14. KWONG YIK BANK BERHAD, Kuala
Lumpur
(formerly known as The Kwong
Yik (Selangor) Banking Corporation Ltd)
The Kwong Yik (Selangor) Banking Corporation Limited was
the first local bank to be incorporated in the Malay Peninsula on the 15th
July 1913. The first office of this bank
was located in the Paterson & Simons building at Old Market Square near the
embarkment in Kuala Lumpur. The initial
authorized capital of this bank was $ 1,000,000 with a paid up capital of $
300,000. The bank underwent rapid progress especially after the post war
period. On 29th November
1965, the authorized capital of this bank was raised to $ 50 million. On 31st March 1970 the name of
this bank was changed to Kwong Yik Bank Berhad.
This bank had 35 branches throughout Malaysia in 1986.
15. HO HONG BANK LIMITED, Singapore
In 1917, the Ho Hong Bank Limited opened its head office
in Singapore with a sub-branch in Malacca, Muar and Batu Pahat. This bank’s policy was one of outward
expansion and the engaging in foreign exchange business by arbitrage. By 1920 this bank had a fully paid up capital
of $ 4,000,000. Branches were also
opened in Penang, Palembang, Seremban, Hong Kong and Batavia (Djakarta). The world wide slump from 1930 onwards and
the abandoning of the gold standard by Great Britain on 21st
September 1931 affected this bank’s foreign exchange activities. This bank lost over $ 2,000,000 but this
amount was nearly covered by the banks reserve fund. On 31st December 1932, the Ho Hong
Bank amalgamated with the Chinese Commercial Bank Limited, Singapore and the
Oversea-Chinese Bank, Singapore to form the Overseas-Chinese Banking
Corporation Limited.
16. OVERSEA-CHINESE BANK LIMITED, Singapore
This bank opened for business in Singapore in 1919 with a
paid up capital of $ 5,250,000. One of
this banks main operations was the transaction of foreign exchange
business. Branch offices were opened
later in Penang, Rangoon (Burma), Kuala Lumpur, Malacca, Amoy (China) and
Djambi (Sumatra). This bank was affected
by the world wide slump from 1930 onwards as well as by the abandoning of the
gold standard by Great Britain on 21st September 1931. To solve common problems, the Director of the
Oversea-Chinese Bank Limited held confidential talks with the Directors of the
Ho Hong Bank Limited, Singapore. When
some progress had been made, the Chinese Commercial Bank was invited to join
the scheme of amalgamating the three banks. This resulted in the signing of an
agreement of sale on the 14th December 1932 by which business,
assets and liabilities were taken over by a new bank named the Oversea-Chinese
Banking Corporation Limited, thus retaining in part the old Chinese name. The new bank was established on 31st
December 1932 with a total paid up capital of $10,000,000 which was divided
into $40 shares.
17. THE BANK OF BATU PAHAT LIMITED, Batu Pahat
(now known as The Pacific
Bank Berhad, Kuala Lumpur)
The Bank of Batu Pahat Limited was incorporated in
Singapore in 1919 but operated in Batu Pahat, Johore. This bank was taken over by The Pacific Bank
Berhad which was established as a subsidiary of The Overseas-Chinese Banking
Corporation Limited in 1963.
18.
LEE WAH BANK LIMITED, Singapore
The Lee Wah Bank Limited was incorporated and established
in Singapore on 20th March 1920.
This bank has 9 branches in Malaysia and 4 branches in Singapore. The Lee Wah Bank Limited was acquired by the
United Overseas Bank Limited in 1983.
19. BANK OF COMMERCE BERHAD, Kuala Lumpur
(formerly Bian Chiang Bank,
Kuching)
The Bian Chiang Bank, Kuching, Sarawak was founded in
1924. In October 1979 the name of this
bank was changed to Bank of Commerce Berhad and the head office was moved to
Kuala Lumpur. This bank had 6 branches
in Malaysia in 1986.
20. BANK OF MALAYA LIMITED, Ipoh
This bank was established in Ipoh in 1920. This bank was
badly affected by the great slump of 1930 and finally closed in 1931.
21. WAH
TAT BANK BERHAD, Sibu, Sarawak
(formerly
Wah Tat Banking Company)
The Wah Tat Banking Company was founded in Sibu in 1929
by Messrs Chew Geok Lin and Teo Chong Loh.
In 1945, the name of the bank was changed to Wah Tat Bank. This bank was converted to a limited company
in 1955. This bank had 2 branches in
Malaysia by 1986.
22. OVERSEAS-CHINESE BANKING CORPORATION
LIMITED, Kuala Lumpur
This bank was founded on 31st October 1932
through the amalgamation of three banks, i.e.
(a) Chinese Commercial Bank Limited (established
in 1912),
(b) Ho Hong Bank Limited (established in 1917)
and
(c) Overseas Chinese Banking Corporation
(established in 1919).
This
bank showed a remarkable record of progress and development. By 1951 this bank
had $230,000,000 in current account balances and deposits. This bank invested heavily in Government
Bonds which in 1951 amounted to 350% of its total paid up capital. By 1986, the O.C.B.C. had 25 branches in
Malaysia and 33 branches overseas.
23. UNITED CHINESE BANK LIMITED, Singapore
This bank was established on 1st October 1935
with a paid up capital of $ 1,000,000.
The chief financiers were Wee Kheng Chiang of Sarawak and Khoo Beng Cheang of
Penang. By 1951 this bank had total
assets of $ 21,195,963 with a declared dividend of 12%.
24. BAN HIN LEE BANK BERHAD, Penang
The Ban Hin Lee Bank Limited with offices in Penang and
Singapore was registered towards the end of 1935. However, the predecessor of this bank had
functioned since 1918 as the banking department of the well known “Chop Ban Hin
Lee” established by the Penang millionaire, Towkay Yeop Chor Ee (1868 –
1952). The total assets of this bank on
1st January 1952 were $ 31,581,958 which was a considerable sum for
a family owned bank. By1986, this bank had 11 branches in Malaysia and 1 branch in Singapore
25. ORIENTAL BANK BERHAD, Kuala Lumpur
(formerly The Oriental Bank of Malaya Limited)
The Oriental Bank of Malaya Limited was incorporated in
1936 by a Ceylonese family. In 1968,
this bank was disposed off to a wealthy businessman who changed the name of the
bank to Oriental Bank Berhad. In 1986,
this bank had 13 branches in Malaysia.
26.
OVERSEAS UNION BANK LIMITED, Singapore
This bank was incorporated in Singapore on 22nd
October 1947 but only commenced business on 5th February 1949 with a
registered capital of $
10,000,000 and a paid up capital $ 2,000,000.
By the end of 1952 this bank had total assets amounting to $ 17,709,813. The Overseas Union Bank Limited opened its
first branch in Kuala Lumpur in 1958. By
1986, this bank had 12 branches in Malaysia.
27. CHUNG KHIAW BANK LIMITED, Singapore
The Chung Khiaw Bank was incorporated in Singapore on 4th
February 1950. The first branch in
Malaya was opened in Ipoh on 1st August 1951. In June 1971, the Chung Khiaw Bank became a
member of the United Overseas Bank Group.
In 1986, the Chung Khiaw Bank Limited had 16 branches throughout
Malaysia.
28. HOCK HUA BANK BERHAD, Sarawak
The Hock Hua Bank Berhad was incorporated in 1952 with
its head office in Sibu. By 1986, this
bank had 9 branches in Malaysia.
29. THE BANK OF CANTON LIMITED
The Bank of Canton was incorporated in Hong Kong in
1912. The only branch of the above bank
in Malaysia was opened in Kuala Lumpur in 1957.
This bank is affiliated with The Security Pacific National Bank, Los
Angeles.
30. BANQUE DE L’INDOCHINE ET DE SUEZ (Banque
Indosuez)
This bank commenced operations in 1875 in the
Indo-Chinese territories and the French settlements in the East. This bank opened a branch in Kuala Lumpur in
1958. The name of this bank was later
changed to Banque Indosuez. In early
1982, the French Government nationalized Banque Indosuez. This led to the restruction of this banks
business in Malaysia. In October 1982,
the Malaysian French Bank was incorporated to acquire the business of Banque
Indosuez.
31. FIRST NATIONAL CITY BANK OF NEW YORK
(Citibank NA)
The above bank opened a branch office in Kuala Lumpur on
27th April 1959. The present
version of the bank’s name ‘Citibank’ was adopted in 1976. By 1986, Citibank had 2 branches in Kuala
Lumpur and 1 branch in Penang.
32. THE BANK OF TOKYO LIMITED
The Bank of Tokyo which was founded in 1946 took over
from the former Yokohama Specie Bank, Japan.
The only branch of the above bank in Malaysia was opened in Kuala Lumpur
on 3rd October 1959. The Bank
of Tokyo Limited International Trade and Investment Information Bureau was set
up in April 1979 to promote investments.
33. BANGKOK BANK LIMITED
Bangkok Bank was founded in July 1944 and is the largest
bank in Thailand. A branch of this bank
was opened in Kuala Lumpur on 23rd January 1959.
34. BANK OF AMERICA NT & SA
The Bank of America NT & SA was founded in 1904 by
A.P. Giannini and is the largest non-government owned bank in the world. A branch of this bank was opened in Kuala
Lumpur on 1st June 1959.
35. UNITED MALAYAN BANKING CORPORATION BERHAD
(UMBC),
Kuala
Lumpur
This bank was established on 16th July 1960
with its head office in Kuala Lumpur. By
1986, this bank had 57 branches in Malaysia and 9 branches overseas.
36. MALAYAN BANKING BERHAD, Kuala Lumpur
Malayan Banking Berhad was incorporated in May 1960 as a
public company with its head office in Kuala Lumpur. Its logo of a tiger’s head is a well
recognized symbol throughout Malaysia.
Malayan Banking is also the largest bank in Malaysia in terms of assets
which have increased from $ 103 million in 1962 to over $ 13 billion in
1985. This bank also has the most number
of branches in comparison to any other bank in Malaysia. In 1986, Malayan Banking Berhad had 180
branches in Malaysia and 30 branches overseas.
37.
HOCK HUA BANK (SABAH) BERHAD, Kota Kinabalu
This bank obtained its license on 11th January
1961. The bank commenced business in
Sandakan on 1st June 1961. It
opened a branch in Tawau in 1965 followed by one in Kota Kinabalu in 1972 and
in Labuan in 1978. The head office of
this bank operates from it’s Kota Kinabalu premises.
38. THE PACIFIC BANK BERHAD, Kuala Lumpur
This bank was incorporated as a wholly owned subsidiary
of the Overseas Chinese Banking Corporation in 1963. It took over the Bank of
Batu Pahat Limited (established in 1919).
In 1986, the Pacific Bank Berhad had 12 branches throughout Malaysia.
39. SOUTHERN
BANK BERHAD, Kuala Lumpur
Southern Bank Berhad (formerly known as Southern Banking
Berhad) was incorporated on 21st December 1963 with its head office
in Kuala Lumpur. In 1986, this bank had
16 branches throughout Malaysia.
40. KONG
MING BANK BERHAD, Kuching
This bank, which was founded by Datuk Ling Beng Sung and
his brother, was incorporated on 4th November 1963. This bank commenced business in Kuching on 17th
January 1965. In 1986, this bank had 8
branches in Sarawak and 1 branch in Kuala Lumpur.
41. THE CHASE MANHATTAN BANK NA
The Bank of Manhattan Company and The Chase National Bank
merged in March 1955 to form The Chase Manhattan Bank. A branch of this bank was opened in Kuala
Lumpur in October 1964.
42. BANK BUMIPUTRA MALAYSIA BERHAD, Kuala
Lumpur
Bank Bumiputra Malaysia Berhad was incorporated in
October 1965 and commenced operations from its head office in Kuala Lumpur in
February 1966. In1986, this bank had 106
branches throughout Malaysia and 9 branches overseas. This bank is also among the largest banks in
Malaysia.
43. DEVELOPMENT AND COMMERCIAL BANK BERHAD,
Kuala Lumpur
This bank was incorporated on 4th October 1965
and commenced business on 10th December 1966 from its head office in
Kuala Lumpur. In 1986, this bank had 29
branches throughout Malaysia.
44. UNITED OVERSEAS BANK LIMITED
United Overseas Bank Limited was incorporated in
Singapore in 1935. A branch of this bank
was opened in Kota Kinabalu, Sabah in 1966.
45. PUBLIC BANK BERHAD, Kuala Lumpur
This bank commenced business from its head office in
Kuala Lumpur on 6th August 1966.
In 1986, this bank had 56 branches throughout Malaysia.
46. BANK UTAMA (MALAYSIA) BERHAD, Kuching
This bank was incorporated on 26th May 1967
and commenced operations on 15th January 1977 from its head office
in Kuching. In 1986, this bank had 4
branches in Sarawak and 1 branch in Kuala Lumpur.
47. UNITED ASIAN BANK BERHAD, Kuala Lumpur
(incorporated in 1972)
Comprising of the former:
(a) INDIAN
OVERSEAS BANK LIMITED, Kuala Lumpur (established in 1937)
(b) INDIAN
BANK LIMITED, Kuala Lumpur (established in 1941)
(c) UNITED
COMMERCIAL BANK LIMITED, Kuala Lumpur (established in 1948)
The
United Asian Bank Berhad, Kuala Lumpur was incorporated on 31st
December 1972 through the amalgamation of three banks, i.e.
Indian Overseas Bank Limited,
Indian Bank Limited and
United Commercial Bank Limited.
At
the time of the takeover in 1972, the three banks had a total of 11 branches in
Malaysia. By 1986, the United Asian Bank
Berhad (UAB), had 33 branches in Malaysia.
At this period of time, one third of the share capital was held by the
bank and two thirds of the bank’s capital was held by Malaysians.
48. EUROPEAN ASIAN BANK (EU ASBANK)
(now
known as Deutsche Bank (Asia)
The European Asian Bank (formerly known as
Deutsche-Asiatische Bank), which has its head office in Hamburg, Germany,
opened a branch office in Kuala Lumpur in 1972.
On 15th December 1986, the name of this bank was changed to
Deutsche Bank (Asia).
49. THE BANK OF NOVA SCOTIA
The Bank of Nova Scotia was founded in 1832 in Halifax,
Nova Scotia, Canada. A branch of the
above bank was opened in Kuala Lumpur in March 1973.
50. PERWIRA HABIB BANK MALAYSIA BERHAD, Kuala
Lumpur
This bank was incorporated on 23rd October
1975 with its head office in Kuala Lumpur.
In 1986, this bank had 26
branches throughout Malaysia.
51. BANK BURUH (MALAYSIA) BERHAD, Kuala Lumpur
Bank Buruh (Malaysia) Berhad was incorporated as a
limited Company on 16th July 1975 with its head office in Kuala
Lumpur. The setting up of this bank was
initiated by the Malaysian Trade Union Congress with the support of the
Malaysian Co-operative movement.
52. SABAH BANK BERHAD, Kota Kinabalu
The Sabah Bank Berhad was incorporated in Kota Kinabalu
on 23rd February 1979 and commenced business on 11th July
1979. By 1986, this bank had 6 branches
in Sabah and 1 branch office in Kuala Lumpur.
53. MALAYSIAN FRENCH BANK BERHAD, Kuala Lumpur
This bank was incorporated in 1982 with its head office
in Kuala Lumpur. This bank took over the
banking business of Banque Indosuez (formerly known as Banque De L’Indosuez)
which had been in operation in Kuala Lumpur since 1958. By 1986, the Malaysian
French Bank Berhad had 6 branches, four of which are located in Kuala Lumpur,
one in Petaling Jaya and one branch in Johor Bahru.
GENERAL
Malaya
attained Independence on 31st August 1957. This led to a rapid growth in development
which required the expansion of banking networks in the country. This saw the establishment of several new
indigenous banks and the expansion of existing domestic and foreign banks to
serve the needs of the thriving economy.
CONCLUSION
By
1986, there were 38 commercial banks with a total of 783 branches throughout
Malaysia. The banks in Malaysia fall
into two categories, i.e.
A. Locally Incorporated
Banks – Total 22 banks
B. Foreign Incorporated
Banks – Total 16 banks
By 1986, there were 29
Foreign Banks which had Representative Offices in Kuala Lumpur.
In 1986, there were 12 Merchant
Banks which were all located in Kuala Lumpur.
Merchant Banks act as bankers as well as provide loans to various
businesses. They also act as financial advisers to Corporations and business
concerns. Merchant Banks also undertake
the underwriting of shares.
Note: The information contained in the above article was researched
in 1986 and is up-to-date and useful up to that period of time. Numerous
changes have occurred in the Banks since 1986 but they are not within the scope
of this article. Saran
Singh August 2011
This article was originally printed in the
Malaysia Numismatic Society Bulletins; Volume 19 No. 1 Jan/Feb 1987, Volume 19 No.
2 Mar/Apr 1987, and Volume 19 No. 3 Jul/Aug 1987.
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