Granting of the transfer of the banking licence of Creditanstalt AG to Bank Austria Creditanstalt International AG

1. A spokesman of the Hong Kong Monetary Authority said today (25 September 1998) that the Hong Kong Monetary Authority had granted the transfer of the banking licence of Creditanstalt AG ("CA") to Bank Austria Creditanstalt International AG ("BACAI") under the Banking Ordinance. This grant of transfer has taken effect on 24 September 1998, on which the merger between Bank Austria AG ("BA") and CA ("the Merger") became effective in Austria.

2. BACAI is a new banking entity. Its establishment is primary for taking over the non-treasury banking business of BA and CA resulting from the Merger, while BA continues to operate the treasury units of the BA Group in London, New York, Hong Kong and Singapore. BACAI was incorporated in Austria on 5 September 1997 and granted a banking licence on 1 April 1998. It is now under the direct supervision of the Austrian Ministry of Finance. Subsequent to the transfer of banking licence, the Hong Kong Branch of BACAI continues to focus on commercial lending activities such as trading financing, aircraft financing, syndicated lending, and residential mortgage loans.

3. Since this involves only the transfer of a banking licence, the total number of banks in Hong Kong remains unchanged, currently 175.

Hong Kong Monetary Authority
25 September 1998