Granting of the transfer of the banking licence of Banco Exterior de Espana, S.A. to Corporacion Bancaria de Espana, S.A.

A spokesman of the Hong Kong Monetary Authority said today (22 October 1998) that the Hong Kong Monetary Authority had granted the transfer of the banking licence of Banco Exterior de Espana, S.A. ("BEE") to Corporacion Bancaria de Espana, S.A. ("CBE") under the Banking Ordinance. This grant of transfer took effect on 20 October 1998, following the merger of BEE, Caja Postal, S.A. ("CP") and Banco Hipotecario de Espana, S.A. ("BHE") into CBE in Spain on the same date.

Upon the merger, CBE immediately changed its name to Argentaria, Caja postal y Banco Hipotecario, S.A. ("ACPH"). The transfer of the banking licence of BEE to CBE (now known as ACPH) enables the group to continue to carry out banking business in Hong Kong. ACPH is under the direct supervision of the Banco de Espana, the banking supervisory body in Spain.

Since this involves only the transfer of a banking licence, the total number of banks in Hong Kong remains unchanged at 176.

Hong Kong Monetary Authority
22 October 1998