Hong Leong Bank - Sarawak

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 Singapore 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 in 1964, Oversea-Chinese Banking Corporation of Singapore (OCBC Bank) under the stewardship of Tan Chin Tuan (its then Chairman and Managing Director) acquired a 52% majority stake in Kwong Lee Bank from the Lam family.

In 1973, Kwong Lee Bank opened another branch in Bintangor.