Fio Assignment

Introduction

Hong Leong Bank is a bank in Malaysia. Mr. Lam Ji Chiew is the founder of Hong Leong Bank and this bank start its operation on 1905 in Kuching, Sarawak under the name of Kwong Lee Mortgage & Remittance Company. The company that starts operate in early 1900’s had 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.

Kwong Lee Mortgage & Remittance Company went through a difficult period of growth a number of economic crises occurred in the initial years. The Post-war Recession of 1920-1921 set in. The company opened its branch in Sibu in 1923 after the recession and three years later another branch was opened in Singapore in 1926. The Great Depression that start in year 1929 and last till 1933 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 able to survived from all these setbacks because it have 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. The third branch of Kwong Lee Bank was opened in Sarikei in 1937 shortly after they converted into a public company.

The Second World War caused a temporary disruption in the currency and banking system. Reconstruction and rehabilitation is one of the immediate tasks for Kwong Lee Bank right after the war. 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.

Expansion in Peninsular Malaysia

In the...