Wing On Bank

The Wing On Bank (永安銀行) was a bank in Hong Kong which collapsed in 1986. It was majority owned by Wing On Holdings, listed vehicle 68.8% controlled by the Kwok family.

History

Collapse

The bank collapsed in 1986 when its auditors had qualified the 1985 accounts on fundamental uncertainty, [ [http://sunzi1.lib.hku.hk/newspaper/view/05_02.08/104520.pdf $154m rights issue may be rejected] , The Standard, May 27, 1986] and its shareholders voted against a special resolution on capital injection of HK$154 million.

The Hang Seng Bank stepped in and bailed out the lender with a cash injection of HK$150 million in December 1985.K. C. Ching, [http://sunzi1.lib.hku.hk/newspaper/view/05_02.10/104748.pdf Bank buyer found - but not named] , The Standard, April 30, 1987]

Hang Seng assumed management control of the failed bank in June 1986, injected a total of HK$330 million,Financial Editor, [http://sunzi1.lib.hku.hk/newspaper/view/05_02.10/104729.pdf 'Closed' signs at three Wing On branches] , South China Morning Post, January 04, 1987] and rapidly returned it to profit. A number of unprofitable branches were closed down. The injection was transformed into a 50.3% stake, which was sold on.

Legislative council approved an appropriation of HK$10 million to investigate possible criminal acts which may have caused the collapse of this and two other institutions. [ [http://sunzi1.lib.hku.hk/newspaper/view/06_03.01/96549.pdf $636m write-offs amid attacks on 'speculation] , The Standard, October 09, 1986] The Commercial Crime Bureau was brought in, and investigators established the bank had collapsed on doubtful loans of $275 million relating to the personal affairs of Albert Kwok the General Manager, who died in April 1986.

Dah Sing Bank became the eventual owners of the bank.

References

ee also

*Wing On
*Wing On House