Granting of banking licence to SANPAOLO IMI S.p.A.

The Hong Kong Monetary Authority announced today (Tuesday) that the Monetary Authority has granted a banking licence to SANPAOLO IMI S.p.A. (SPI) under the Banking Ordinance. This grant of banking licence took effect on 20 August 2001.

SPI is incorporated and operates as a bank in Italy. It engages primarily in retail and commercial banking in its domestic market and enjoys leading positions in asset management and investment banking activities. It ranked 3^rd among banks in Italy and 63^rd globally in terms of capital, with consolidated total assets of €172 billion as at 31 December 2000.

SPI has earlier gained control of Banco di Napoli S.p.A. (BdN), which currently operates as a bank in Hong Kong. The primary reason for SPI's application for a banking licence is to take over the business of BdN in Hong Kong as part of the restructuring of the group. The principal activities of the Hong Kong Branch of SPI (SPIHK) will be the same as those of the Hong Kong Branch of BdN, which focuses on wholesale and commercial banking businesses including syndicated lending, corporate lending and trade financing. BdN will, after the completion of transfer of the assets and liabilities of its Hong Kong Branch to SPIHK, apply for revocation of its authorisation as a bank in Hong Kong.

After the granting of a banking licence to SPI, the number of banks in Hong Kong has increased to 152.

For further enquiries, please contact:

Caitlin Wong, Manager (Press), at 2878 1687 or
Thomas Chan, Senior Manager (Press), at 2878 1480

Hong Kong Monetary Authority
21 August 2001