Granting of the transfer of the banking licence of Kredietbank N.V. to KBC Bank N.V.

A spokesman of the Hong Kong Monetary Authority said today (5 June 1998) that the Hong Kong Monetary Authority had granted the transfer of the banking licence of Kredietbank N.V. (KB) to KBC Bank N.V. (KBC) under the Banking Ordinance. This grant of transfer has taken effect on and from 5:00 p.m. Belgium time on 3 June 1998, the time at which the merger between KB and CERA Bank (the Merger) became effective in Belgium.

KBC is a new banking entity. Its establishment is primary for taking over the entire business of KB resulting from the Merger. KBC was incorporated in Belgium on 17 March 1998, and is now under the direct supervision of the Banking and Finance Commission in Belgium. Subsequent to the transfer of banking licence, KBC's Hong Kong Branch continues to focus on trade financing, syndicated lending, foreign exchange trading, share financing and deposit-taking.

Since this involves the transfer of a banking licence, the total number of banks in Hong Kong remains unchanged, currently 177.

Hong Kong Monetary Authority
5 June 1998