Granting of banking licence to Erste Bank der oesterreichischen Sparkassen AG

A spokesman of the Hong Kong Monetary Authority said today that Erste Bank der oesterreichischen Sparkassen AG (EB) had been granted a banking licence by the Monetary Authority under the Banking Ordinance on 10 August 1998.

EB is the second largest bank in Austria, created through the merger of GiroCredit Bank AG der Sparkassen (GiroCredit) in October 1997. At the end of 1997, its total assets and tier one capital respectively amounted to US$46 billion and US$1.8 billion. EB has a 7.7% share of savings deposits and 8% share of the consumer loan market in Austria. EB provides a full range of banking and financial services through its branch network in Austria and other foreign cities, including London and New York.

EB, through GiroCredit, has maintained a representative office in Hong Kong since March 1980. The primary reason for its application for a banking licence is to widen its income sources through diversification of credit risks and provision of support to its existing and targeted European clients operating within the Asian region.

After the granting of a banking licence to EB, the number of banks in Hong Kong has increased to 176 of which 31 are incorporated in Hong Kong.

Hong Kong Monetary Authority
11 August 1998