Chung Khiaw Bank

Chung Khiaw Bank Limited was a Singapore bank that was established by millionaire Aw Boon Haw and later became a subsidiary of United Overseas Bank after takeovers in 1971–72. Part of the shares of Chung Khiaw Bank was injected to a listed company Haw Par Brothers International in 1969 and was acquired by a domestic competitor United Overseas Bank (UOB) in 1971, after the parent company was takeover by Slater Walker. Chung Khiaw Bank merged with UOB in 1999.

Chung Khiaw Bank
TypeSubsidiary (Former private)
IndustryFinancial services
Founded
4 February 1950(start operation)[2]
Founder
Aw Boon Haw(as shareholder and founding chairman)
Lee Chee Shan(as founding managing director)
Defunct
1999(in Singapore market)[3]
1997(in Malaysia market)[3]
1999(in Hong Kong market)[3]
FateMerged with UOB
SuccessorCertain UOB branches in Singapore, Malaysia and Hong Kong
HeadquartersInternational Plaza,
Singapore[4]
Area served
  • Singapore
  • Malaysia
  • Hong Kong
Services
  • retail banking
  • corporate banking
Decrease S$66 million[4](1997)
Decrease S$53 million[5](1998)
OwnerUnited Overseas Bank (100%)
ParentUnited Overseas Bank
Chinese name
Traditional Chinese崇僑銀行
Simplified Chinese崇侨银行
Literal meaningHonor Overseas Bank (Bank [that] Honor Overseas [Chinese])
Footnotes / references
Profit excluding Malaysia branches

The brand "Chung Khiaw Bank" was survived in nearby Malaysia as a subsidiary of UOB until 1997. In 1997, UOB (Malaysia) merged with Chung Khiaw Bank (Malaysia).[6]

In 1971, Chung Khiaw Bank also have two branches in Hong Kong, which became the branches of UOB in 1999.[7]

History

Chung Khiaw Bank was established as a family-held business on 59 Robinson Road, Singapore. The founding chairman of the bank was millionaire Aw Boon Haw, who famous for his "Star Newspapers", and "Tiger Balm"; after his death, Ko Teck Kin (Chinese: 高德根)[8] and then Aw Cheng Chye, nephew of Aw Boon Haw and son of Aw Boon Par succeed the position. However, the founding managing director / president of the bank, was Lee Chee Shan (李志城),[nb 1] husband of Aw Cheng Hu, the daughter of Aw Boon Par.[9] It was reported that Lee himself was a blood relatives of Aw Boon Haw and Boon Par, according to Lee granddaughter's autobiography (distant relatives)[10]: 6  and a book by the Institute of Southeast Asian Studies (first cousin once removed).[11] Lee still served for the bank after the death of Aw Boon Haw.

In 1969, Aw Cheng Chye took most of the assets of family-held holding company Haw Par Brothers (Private) Limited public by the incorporation of Haw Par Brothers International and an initial public offering.[12] The assets including equity stake of Chung Khiaw Bank.[12] In June 1971, the listed company was takeover by Slater Walker.[13] However, the 49.8% stake of Chung Khiaw Bank that was held by the listed company, was sold to domestic competitor United Overseas Bank (UOB) for S$22 million.[14] Lee Chee Shan was retired from the position "lifetime president" in July 1971 with a retirement compensation of S$750,000.[15] Before his retirement, his monthly salary was S$35,500.[15] Lee Chee Shan was appointed as "lifetime president" from managing director circa 1 June 1971.[16]

In 1972, a new logo for both UOB and Chung Khiaw Bank was launched.[1] Some member of Aw family, such as Aw It Haw, remained as the director of Chung Khiaw Bank in January 1972, with the rest was related to UOB.[1] Aw Cheng Chye also remained as the director until his death on 22 August 1971.[15] A proposal to acquire the remaining stake of Chung Khiaw Bank by UOB by a share swap (1:1), was announced in June 1972.[17] A minority shareholder made a public statement on the newspaper to against it, claiming the price was not favourable as well as the conflict of interest of the director from the related parties.[17] Nevertheless, UOB acquired an additional 28.7% stake in mid-1973.[4]

In 1974, a rumor that the bank's financial position was precarious caused a bank run in its Singapore branches.[18][19][20] This was one of the reasons why deposit insurance was introduced in Singapore.[21]

Chung Khiaw Bank finally became a wholly owned subsidiary of UOB in February 1988 by issuing 15,230,903 number of UOB new shares as payment for the remaining 17.13 million number of shares (17.1%) of Chung Khiaw Bank.[3][4][22] At the time of acquisition, Aw It Haw was still a director of Chung Khiaw Bank.[23]

In 1997, Malaysia branches was merged with UOB branches.[3][24] In 1999, Chung Khiaw Bank was finally absorbed by UOB, became UOB branches.[3]

Footnotes
  1. Both 成 and 城 were used in the news report, but actually the two Chinese characters have different meaning. Chinese: 李志成 seem incorrect, as 城 was used in the death notice

References
  1. "大華銀行崇僑銀行舉行酒會慶祝聯用新標誌". Nanyang Siang Pau (in Chinese). Singapore. 3 January 1972. Retrieved 11 October 2017 – via Singapore National Library.
  2. "untitled". The Straits Times. Singapore. 1 February 1950. Retrieved 11 October 2017 – via Singapore National Library.
  3. "About UOB". UOB. Archived from the original on 26 September 2013. Retrieved 11 October 2017.
  4. "1997 Annual Report" (PDF). United Overseas Bank. 1998. Retrieved 11 October 2017.
  5. "1998 Annual Report" (PDF). United Overseas Bank. 1999. Retrieved 11 October 2017.
  6. "Corporate Profile". United Overseas Bank (Malaysia). Retrieved 11 October 2017.
  7. "有關香港大華銀行" [About UOB (Hong Kong)] (in Chinese). UOB (Hong Kong). Retrieved 11 October 2017.
  8. "崇僑銀行簡史". Nanyang Siang Pau (in Chinese). Singapore. 11 February 1968. Retrieved 14 October 2017 – via Singapore National Library.
  9. "The Aw family". New Nation. Singapore. 23 July 1971. Retrieved 6 October 2017 – via Singapore National Library.
  10. Harding, John; Lee, May Chu (2001). Escape from Paradise: From Third World to First. Phoenix: IDKPress. ISBN 0-9710929-0-7. Retrieved 11 October 2017.
  11. Suryadinata, Leo, ed. (2012). Southeast Asian Personalities of Chinese Descent. Singapore: Institute of Southeast Asian Studies. p. 497. ISBN 9789814345217. Retrieved 11 October 2017. Lee's father was the younger cousin of "Tiger Balm King", Aw Boon Haw,
  12. Haw Par Brothers International (12 November 1969). "Prospectus". The Straits Times. Singapore. pp. 6 to 7. Retrieved 8 October 2017 – via Singapore National Library.
  13. "untitled". The Straits Times. Singapore. 11 June 1971. Retrieved 7 October 2017 – via Singapore National Library.
  14. "大華銀行經已取得 崇僑銀行平衡股權 虎豹出售股權値二千二百萬元". Nanyang Siang Pau (in Chinese). Singapore. 19 June 1971. Retrieved 11 October 2017 – via Singapore National Library.
  15. "拿督李志成再被委為崇僑銀行總裁惟屬名譽性質". Nanyang Siang Pau (in Chinese). Singapore. 20 August 1971. Retrieved 10 October 2017 – via Singapore National Library.
  16. "崇僑銀行董事會議决定提升李志城爲永久總裁". Nanyang Siang Pau (in Chinese). Singapore. 2 June 1971. Retrieved 13 October 2017 – via Singapore National Library.
  17. "祟僑銀行一股東的申訴". Nanyang Siang Pau (in Chinese). Singapore. 23 June 1972. Retrieved 11 October 2017 – via Singapore National Library.
  18. "Bank rumours". The Straits Times. Singapore. 5 October 1974. Retrieved 11 October 2017 – via Singapore National Library.
  19. "ABS: Don't listen to those rumours". The Straits Times. Singapore. 5 October 1974. Retrieved 11 October 2017 – via Singapore National Library.
  20. "Bank 'crisis' rumours in S'pore: How they started". The Straits Times. Singapore. 28 December 1974. Retrieved 11 October 2017 – via Singapore National Library.
  21. "Plan to protect small deposits". New Nation. Singapore. 23 October 1974. Retrieved 11 October 2017 – via Singapore National Library.
  22. "Corporate News". The Straits Times. Singapore Press Holdings. 14 December 1987. Retrieved 11 October 2017 – via Singapore National Library.
  23. "UOB to make Chung Khiaw Bank a wholly-owned subsidiary". Business Times. Singapore Press Holdings. 10 December 1987. Retrieved 11 October 2017 – via Singapore National Library.
  24. Ong-Yeoh, David (27 December 1996). "Chung Khiaw Bank, UOB (M) to merge (HL)". Business Times. Kuala Lumpur – via ProQuest.

Further reading
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