• Mon
  • Dec 22, 2014
  • Updated: 1:19am

Bank of China

Bank of China is one of the big four state-owned commercial banks of the People's Republic of China – the other three are Industrial and Commercial Bank of China, China Construction Bank and Agricultural Bank of China. Bank of China was founded in 1912 to replace the Government Bank of Imperial China, and is the oldest bank in China. From its establishment until 1942, it issued banknotes on behalf of the Government of the Republic of China along with the "Big Four" banks of the period: the Central Bank of China, Farmers Bank of China and Bank of Communications. Although it initially functioned as the Chinese central bank, in 1928 the Central Bank of China replaced it in that role. Subsequently, BOC became a purely commercial bank.

Dah Sing's credit rating under pressure over payout deal

PUBLISHED : Saturday, 25 July, 2009, 12:00am
UPDATED : Saturday, 25 July, 2009, 12:00am
 

Standard & Poor's ratings service has put Dah Sing Bank's credit rating on CreditWatch, with negative implications after a group of banks in Hong Kong agreed to a compensation deal to repay Lehman Brothers minibonds investors.

Dah Sing's long-term unsolicited rating is BBB-plus.

The ratings agency said the move reflected its view that Dah Sing's weakened profitability was likely to come under further pressure from potential losses related to its proposed payout for the minibonds.

'Together with an expected deterioration in Dah Sing Bank's loan quality, the proposed repurchases could further undermine Dah Sing's credit profile,' Standard & Poor's said.

Dah Sing Bank estimated its share of the compensation at about HK$464 million.

Standard & Poor's affirmed Bank of China (Hong Kong)'s A-minus long-term rating, despite HK$3.1 billion to be paid in the minibond payout, due to its strong market position, solid capitalisation and good asset quality.

The agency also said the ratings of Bank of East Asia and Fubon Bank (Hong Kong) were not affected by their proposed payout for the minibonds. ICBC (Asia) estimated its compensation payout would cost it HK$88.75 million.

Share

For unlimited access to:

SCMP.com SCMP Tablet Edition SCMP Mobile Edition 10-year news archive
 
 

 

 
 
 
 
 

Login

SCMP.com Account

or