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.
Company type | Subsidiary (Former private) | ||||||||||
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Industry | Financial services | ||||||||||
Founded |
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Founder |
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Defunct |
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Fate | Merged with UOB | ||||||||||
Successor | Certain UOB branches in Singapore, Malaysia and Hong Kong | ||||||||||
Headquarters | International Plaza, Singapore[4] | ||||||||||
Area served |
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Services |
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Owner | United Overseas Bank (100%) | ||||||||||
Parent | United Overseas Bank | ||||||||||
Chinese name | |||||||||||
Traditional Chinese | 崇僑銀行 | ||||||||||
Simplified Chinese | 崇侨银行 | ||||||||||
Literal meaning | Honor Overseas Bank (Bank [that] Honor Overseas [Chinese]) | ||||||||||
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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]
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]
Lee's father was the younger cousin of "Tiger Balm King", Aw Boon Haw,