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Bank of Canton

Bank of Canton was a Chinese-owned banking institution founded in 1912 that became the first Chinese-owned bank established in Hong Kong and later evolved into Bank of America (Asia).

Last updated August 31, 2026

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Overview

Bank of Canton, also known by its Chinese name 廣東銀行, was a historic Chinese-owned banking institution founded in 1912 in Canton, now Guangzhou. It was established by Chinese residents of the United States, including members of the Fok family and P. T. Fok. The bank was incorporated as a British company in Hong Kong, a structure that made it the first Chinese-owned bank in Hong Kong at a time when the territory's banking system was dominated by British and other foreign institutions. Even the locally incorporated Hongkong and Shanghai Banking Corporation was British-run, giving Bank of Canton an important distinction in the financial history of Chinese commerce in Hong Kong. The institution expanded beyond its original base during the early twentieth century. It opened a Shanghai branch in 1917, established a Bangkok branch in 1921, and opened a New York agency that became a branch in 1922. The New York operation closed in 1931. In 1922, the bank also opened branches in Hankou and Shantou. Its mainland branches issued banknotes denominated in local currency dollars, and the Shanghai branch issued a high-value 500-dollar note. These activities reflected the bank's role in serving cross-border Chinese commercial and remittance networks rather than operating solely as a local Hong Kong institution. Bank of Canton was severely affected by China's abandonment of the silver standard in 1935 and was among the banks that failed during the ensuing financial disruption. At that time, its network included operations in San Francisco, Bangkok, Shanghai, Canton, and Hankou. T. V. Soong reorganized the institution in 1936, allowing it to reopen without the former right to issue banknotes. On 1 July 1936, the bank incorporated a subsidiary in Macau, creating a presence that became one of the territory's longest-established banking operations. Its overseas network was also affected by political developments: in 1939, the government of Siam closed the Bank of Canton's Thai branch during a period of anti-Chinese sentiment, alleging that Chinese banks facilitated illegal remittances. After the Second World War, the bank resumed regional expansion. It opened a Singapore branch in 1953 and had re-established operations in Thailand while also developing branches in Malaysia by 1968. By 1979, Bank of Canton had nine licensed branches in Hong Kong, together with branches in Bangkok, Kuala Lumpur, and Singapore, as well as a banking subsidiary in Macau. This network positioned it as a regional commercial bank serving Chinese business communities and trade corridors across Southeast Asia. The decisive change in ownership began in 1971, when Security Pacific National Bank acquired a 69 percent stake. An attempt to acquire the remaining shares in 1978 did not succeed, but negotiations resumed in the 1980s. In 1984, the boards announced an agreement under which Security Pacific would acquire the ordinary and preference shares it did not already own. The arrangement contemplated continuity for the existing management and provided for Russell Fok to remain chairman, subject to completion of the transaction. Security Pacific completed the acquisition in 1988 and renamed the institution Security Pacific Asia Bank. The brand subsequently disappeared through a series of corporate transactions. Following Bank of America's acquisition of Security Pacific Corporation in 1992, the Asian banking operation was renamed Bank of America (Asia) in 1993. In 1994, Bank of America sold the operation in Malaysia to Arab-Malaysian Bank. In 2006, China Construction Bank acquired Bank of America (Asia). Bank of Canton therefore no longer operates as an independent brand, but its history remains significant for the development of Chinese-owned banking in Hong Kong, Macau, and the wider Asian diaspora.

History

Bank of Canton was founded in 1912 in Canton by Chinese residents of the United States, including members of the Fok family and P. T. Fok. Although it originated in mainland China, the institution was registered as a British company in Hong Kong. This corporate structure gave it a distinctive place in Hong Kong's financial history: it was the first Chinese-owned bank established in the territory, while the other major banks were foreign-owned or British-controlled. The bank pursued an international strategy from an early stage. It opened a Shanghai branch in 1917, a Bangkok branch in 1921, and a New York agency that became a branch in 1922. The New York branch closed in 1931. Also in 1922, the bank expanded to Hankou and Shantou. Its mainland branches issued notes denominated in local currency dollars, including a 500-dollar note issued by the Shanghai branch. These activities connected the institution to Chinese commercial networks and overseas remittance flows. The financial crisis associated with China's departure from the silver standard in 1935 caused the bank to fail. Its network at the time included branches or operations in San Francisco, Bangkok, Shanghai, Canton, and Hankou. T. V. Soong reorganized the institution the following year, after which it reopened without the right to issue banknotes. On 1 July 1936, Bank of Canton incorporated a subsidiary in Macau. The Macau operation gave the group a particularly durable presence in the territory and is described as one of Macau's longest-established banking businesses. Political conditions affected the bank's overseas operations. In 1939, during a period of widespread anti-Chinese sentiment in Siam, the Thai government closed the local branches of Bank of Canton and Oversea-Chinese Banking Corporation. The authorities alleged that the banks helped Chinese residents conduct illegal remittances. Despite this interruption, the bank later rebuilt its regional network. It opened a Singapore branch in 1953 and, by 1968, had branches in Malaysia and had re-entered Thailand. By 1979, Bank of Canton maintained nine licensed branches in Hong Kong, one branch each in Bangkok, Kuala Lumpur, and Singapore, and a banking subsidiary in Macau. The institution was therefore no longer only a Cantonese or Hong Kong bank; it had become a regional bank focused on the commercial and financial needs of Chinese communities and businesses across Asia. A major ownership transition began in 1971, when Security Pacific National Bank acquired 69 percent of Bank of Canton. Security Pacific attempted to buy the remaining shares in 1978, but negotiations broke down. In 1984, the boards announced a new agreement for Security Pacific to acquire the ordinary and preference shares it did not already own. The agreement stated that Bank of Canton's management would remain in place and that Russell Fok would continue as chairman. Security Pacific completed the acquisition in 1988 and renamed the institution Security Pacific Asia Bank. The original brand was subsequently absorbed into larger banking groups. Bank of America acquired Security Pacific Corporation in 1992 and renamed Security Pacific Asia Bank Bank of America (Asia) in 1993. In 1994, Bank of America sold the Malaysian operations to Arab-Malaysian Bank. China Construction Bank acquired Bank of America (Asia) in 2006. Bank of Canton is consequently a defunct independent banking brand whose institutional legacy continued through successor banks.

  • 2006

    Former operation is acquired by China Construction Bank

    [1]

    China Construction Bank acquires Bank of America (Asia), the successor operation to Bank of Canton.

  • 1993

    Operation becomes Bank of America (Asia)

    [1]

    Following Bank of America's acquisition of Security Pacific Corporation, the Asian subsidiary receives a new name.

  • 1988

    Brand is renamed Security Pacific Asia Bank

    [1]

    Security Pacific completes its acquisition and retires the Bank of Canton name.

  • 1979

    Regional branch network reaches mature scale

    [1]

    The bank has nine Hong Kong branches, branches in Bangkok, Kuala Lumpur, and Singapore, and a Macau banking subsidiary.

  • 1971

    Security Pacific acquires a majority stake

    [1]

    Security Pacific National Bank acquires 69 percent of Bank of Canton.

  • 1953

    Singapore branch opens

    [1]

    The postwar regional network expands to Singapore.

  • 1936

    Bank is reorganized and reopens

    [1]

    T. V. Soong reorganizes the bank, which resumes operations without note-issuing rights; a Macau subsidiary is incorporated on 1 July.

  • 1935

    Bank fails during the silver-standard crisis

    [1]

    The institution fails after China's move away from the silver standard.

  • 1922

    New York operation becomes a branch

    [1]

    The bank's New York agency is upgraded to branch status; additional branches open in Hankou and Shantou.

  • 1921

    Bangkok branch opens

    [1]

    Bank of Canton begins building an overseas Southeast Asian presence.

Products and positioning

A Chinese-owned regional commercial bank serving Chinese business, trade, and remittance networks across Hong Kong, mainland China, Macau, and Southeast Asia.

  • Commercial banking · 1912

    Branch commercial banking

    Bank of Canton operated a conventional branch-banking network serving businesses and individuals in Hong Kong, mainland China, Macau, and selected Southeast Asian markets. Its branch footprint was especially significant because it linked Hong Kong-based banking with Chinese commercial communities across the region.

  • International banking · 1921

    Cross-border and remittance banking

    The bank's operations in the United States, Hong Kong, Thailand, Singapore, Malaysia, Macau, and mainland China supported cross-border commerce and remittance activity. These services were central to its role as a bank associated with overseas Chinese business networks.

  • Currency issuance

    Banknotes

    Before its reorganization in 1936, Bank of Canton issued notes through Chinese branches in local currency dollars. The Shanghai branch is recorded as having issued a 500-dollar note. The bank lost its note-issuing authority when it reopened after the 1935 failure.

  • Regional banking · 1936

    Macau banking subsidiary

    Incorporated on 1 July 1936, the Macau subsidiary formed a long-running part of the bank's regional structure. Its establishment helped preserve Bank of Canton's presence in a major Portuguese-administered Asian financial center and contributed to the institution's historical importance in Macau banking.

Brand decisions

  • 2006

    Transfer the successor operation to China Construction BankM&A

    Background

    Bank of America was restructuring its Asian banking holdings.

    Action taken

    China Construction Bank acquired Bank of America (Asia), the successor institution to Bank of Canton.

    Aftermath

    The Bank of Canton lineage entered China Construction Bank and no longer existed as an independent branded bank.

  • 1993

    Rebrand the Asian operation as Bank of America (Asia)Strategy

    Background

    Bank of America acquired Security Pacific Corporation in 1992.

    Action taken

    The former Bank of Canton operation, then known as Security Pacific Asia Bank, was renamed Bank of America (Asia).

    Aftermath

    The business became part of Bank of America's Asian banking platform until its later sale to China Construction Bank.

  • 1988

    Retire the Bank of Canton name after full acquisitionStrategy

    Background

    Security Pacific had progressively increased its ownership after acquiring a majority stake in 1971.

    Action taken

    After completing the acquisition, Security Pacific renamed Bank of Canton Security Pacific Asia Bank.

    Aftermath

    The independent Bank of Canton brand ceased operating, although its banking operations continued under successor names.

  • 1984

    Agree to acquire the remaining Bank of Canton sharesM&A

    Background

    Security Pacific already controlled 69 percent of the bank, while an earlier attempt in 1978 to acquire the remaining shares had failed.

    Action taken

    The boards announced an agreement for Security Pacific to purchase the ordinary and preference shares it did not own. The reported terms included a price of $59.31 per share for 714,128 common shares, representing 31 percent, for an aggregate cost of approximately $42 million. The agreement also contemplated management continuity and the continued chairmanship of Russell Fok.

    Aftermath

    Security Pacific completed the acquisition in 1988 and changed the brand to Security Pacific Asia Bank.

    Purchase price for remaining common shares. $59.31 per share; approximately $42 million total (1984 agreement)

  • 1971

    Accept majority investment by Security Pacific National BankM&A

    Background

    Bank of Canton had developed a regional branch network but remained a comparatively small institution within an increasingly international banking market.

    Action taken

    Security Pacific National Bank acquired a 69 percent stake in Bank of Canton.

    Aftermath

    Security Pacific later pursued full ownership, eventually completing the acquisition in 1988 and renaming the bank Security Pacific Asia Bank.

  • 1936

    Reopen after reorganization without note-issuing rightsStrategy

    Background

    Bank of Canton failed during the financial disruption associated with China's abandonment of the silver standard in 1935.

    Action taken

    T. V. Soong reorganized the institution, and it resumed business without its previous authority to issue banknotes.

    Aftermath

    The bank continued as a commercial banking institution and incorporated a Macau subsidiary later in 1936.

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