The Oriental Bank Corporation Was the First Bank in Hong Kong

Contrary to what one might expect, HSBC was not the first banking institution in Hong Kong. In fact, being founded in 1864, HSBC, or the Hongkong Bank as it was originally known, was a relatively latecomer.

In the early days of the colony, businesses in Hong Kong were controlled by trading houses such as, for instance, Jardine Matheson, Gibb Livingston, and Dent & Co. This oligopoly led to growing dissatisfaction and the development of a proper banking industry in Hong Kong.

In 1846, four years after the cession of Hong Kong Island to the British, the Oriental Bank Corporation became the first bank established in Hong Kong. However, it was not founded in Hong Kong, but in Bombay, India, in 1842, under the name Bank of Western India.

In the 1860s, the Oriental Bank Corporation was regarded as the most powerful, oldest, and most prestigious Eastern exchange bank. Unfortunately, in the 1870s, bad loans in Ceylon (now Sri Lanka) and Mauritius led the bank to financial hardships. On May 2, 1884, the Oriental Bank Corporation was liquidated. After a revival attempt as the New Oriental Bank Corporation, the bank eventually failed in 1892.