Citibank
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Citibank is one of the major and earliest financial institutions in Singapore that is still in operation today. Industrialist Marcellus Hartley and corporate lawyer Thomas Hubbard founded its predecessor, the City Bank of New York in United States in 1901.
The Founding
The National City Bank of New York was founded in New York in 1812. After several changes to its original name, it was renamed the International Banking Corporation (IBC) in 1901. It was only in 1976 that the name of the bank changed to Citibank, N.A (National Association). In 1902, political and social conditions in the United States, China and Asia favoured the establishment of overseas branches by the IBC. This formed the initial basis of Citigroup's first century in Asia and in particular, Singapore. The early branches were not only opened in the treaty ports of China, Japan, and the American colony of Philippines, but they were also established in parts of the British Empire of India and Singapore. The opening of the first American bank in Singapore on 1 July 1902 signaled the importance of Singapore to the American rubber industry. The Singapore branch focused on financing the exports of tin and rubber from the Malayan hinterland, although there was severe competition from British, French, Japanese, Dutch and other American banks in the later period.
Early System
By the late 19th and 20th centuries, each branch had its own comprador. The comprador (Portuguese for buyer) acted as a highly trusted intermediary between the bank and the local businesses. He usually had a good amount of collateral which he could pledge to attract clients to the bank, and he made his earnings through commission. The comprador was also in charge of the cash department and tellers in the branches, checking against fraud and losses. As a result, most people working in the cash department were either related or loyal to the comprador. This would never have been permitted in banks in America. However, the practice was tolerated here because the system brought in native clients and provided stability and continuity in the bank. Song Kim Pong was the first Singaporean comprador in IBC. He worked as an assistant cashier for 16 years in another bank before his appointment in IBC in 1902.
Developments in the 1930s
In the 1930s when foreign exchange trading and trade financing were the main forms of transaction in banks, the Singapore branch of IBC was rather unusual in its earnings. The branch's profits were primarily from ordinary lending instead of foreign exchange and trade financing. At that time, IBC was lending money in huge sums to local rubber companies, and to manufacturers such as Firestone and Goodyear. The sum lent was so huge that the branch inevitably faced problems when the world economy and rubber prices collapsed in the early 1930s. Ralph Newell, who spent 36 years with the bank in Asia, was transferred to Singapore to clean up the mess. Ho Kim Seng, a local who was hired through a local recruitment drive, later succeeded him. Through this move, IBC hoped to improve the relationship between the business community and the local government amidst a wave of anti-foreign and nationalistic sentiments that were sweeping across Asia in the 1930s. This attempt to appeal to the locals was short-lived as the Pacific War broke out soon after.
During the 1940s
By the end of 1941, many of the bank's remaining branches in Asia were already in the hands of the Japanese. Right up to their last days, the branches were obliged to remain open as they were the official bank for the American government in those cities. The Singapore branch was working day and night to help finance the U.S government in their last-minute purchases of tin and rubber. Even as the Japanese crossed the Causeway, the Singapore branch was still in operation. George Magruder, a sub-accountant at the IBC, recalled that he was left behind to clear the settlements while the rest of the staff left on a boat for India. On 5 February 1942, when the Japanese invaded Singapore, the Singapore branch handed over the remaining items on its balance sheet to a British bank. The Singapore branch was said to be the only institution that got out of Singapore without any loss of funds and personnel.
Post-War And After
The bank resumed operations in mid-1945. However, post-war activities for the bank were less dynamic and remained stagnant for the next 10 to 15 years. Things picked up for the bank in the 1970s when Singapore actively promoted the establishment of manufacturing companies. During this period, finance and consumer services became part of its core business. Consumer services continues to be the driving force behind the bank's operations in Asia. The rising affluence of consumers in the last 20 years has created new opportunities for Citibank in Singapore and Asia. Citibank established the Consumer Bank in 1982 to cater to the needs of individuals and small businesses. In recent times, the milestones which the bank has achieved include value-added services such as the Automated Teller Machine (ATM), 24-hour phone banking, the International Citicard, Instant Cash, and internet banking.
The Founding
The National City Bank of New York was founded in New York in 1812. After several changes to its original name, it was renamed the International Banking Corporation (IBC) in 1901. It was only in 1976 that the name of the bank changed to Citibank, N.A (National Association). In 1902, political and social conditions in the United States, China and Asia favoured the establishment of overseas branches by the IBC. This formed the initial basis of Citigroup's first century in Asia and in particular, Singapore. The early branches were not only opened in the treaty ports of China, Japan, and the American colony of Philippines, but they were also established in parts of the British Empire of India and Singapore. The opening of the first American bank in Singapore on 1 July 1902 signaled the importance of Singapore to the American rubber industry. The Singapore branch focused on financing the exports of tin and rubber from the Malayan hinterland, although there was severe competition from British, French, Japanese, Dutch and other American banks in the later period.
Early System
By the late 19th and 20th centuries, each branch had its own comprador. The comprador (Portuguese for buyer) acted as a highly trusted intermediary between the bank and the local businesses. He usually had a good amount of collateral which he could pledge to attract clients to the bank, and he made his earnings through commission. The comprador was also in charge of the cash department and tellers in the branches, checking against fraud and losses. As a result, most people working in the cash department were either related or loyal to the comprador. This would never have been permitted in banks in America. However, the practice was tolerated here because the system brought in native clients and provided stability and continuity in the bank. Song Kim Pong was the first Singaporean comprador in IBC. He worked as an assistant cashier for 16 years in another bank before his appointment in IBC in 1902.
Developments in the 1930s
In the 1930s when foreign exchange trading and trade financing were the main forms of transaction in banks, the Singapore branch of IBC was rather unusual in its earnings. The branch's profits were primarily from ordinary lending instead of foreign exchange and trade financing. At that time, IBC was lending money in huge sums to local rubber companies, and to manufacturers such as Firestone and Goodyear. The sum lent was so huge that the branch inevitably faced problems when the world economy and rubber prices collapsed in the early 1930s. Ralph Newell, who spent 36 years with the bank in Asia, was transferred to Singapore to clean up the mess. Ho Kim Seng, a local who was hired through a local recruitment drive, later succeeded him. Through this move, IBC hoped to improve the relationship between the business community and the local government amidst a wave of anti-foreign and nationalistic sentiments that were sweeping across Asia in the 1930s. This attempt to appeal to the locals was short-lived as the Pacific War broke out soon after.
During the 1940s
By the end of 1941, many of the bank's remaining branches in Asia were already in the hands of the Japanese. Right up to their last days, the branches were obliged to remain open as they were the official bank for the American government in those cities. The Singapore branch was working day and night to help finance the U.S government in their last-minute purchases of tin and rubber. Even as the Japanese crossed the Causeway, the Singapore branch was still in operation. George Magruder, a sub-accountant at the IBC, recalled that he was left behind to clear the settlements while the rest of the staff left on a boat for India. On 5 February 1942, when the Japanese invaded Singapore, the Singapore branch handed over the remaining items on its balance sheet to a British bank. The Singapore branch was said to be the only institution that got out of Singapore without any loss of funds and personnel.
Post-War And After
The bank resumed operations in mid-1945. However, post-war activities for the bank were less dynamic and remained stagnant for the next 10 to 15 years. Things picked up for the bank in the 1970s when Singapore actively promoted the establishment of manufacturing companies. During this period, finance and consumer services became part of its core business. Consumer services continues to be the driving force behind the bank's operations in Asia. The rising affluence of consumers in the last 20 years has created new opportunities for Citibank in Singapore and Asia. Citibank established the Consumer Bank in 1982 to cater to the needs of individuals and small businesses. In recent times, the milestones which the bank has achieved include value-added services such as the Automated Teller Machine (ATM), 24-hour phone banking, the International Citicard, Instant Cash, and internet banking.
Author
Kartini Saparudin
References
Baker, J. (2005). The eagle in the Lion City. (pp. 95-96, 180). Singapore: Landmark Books.
(Call no.: RSING 303.4825957073 BAK)
Citibank, N.A. (2007). History of Citibank in Singapore. Retrieved May 22, 2007, from http://www.citibank.com.sg/APPS/portal/loadPage.do?tabId=home&path=/info/det/ab_hcs.htm
Citigroup (2002). Citibank: A century in Asia. (pp. 13, 20, 33, 35, 39, 50, 55, 68-75, 78, 87,97, 114, 140, 152, 160, 196). Singapore: Editions Didier Millet.
(Call no.: RSING q332.12095957 STA)
Weller, G. (1943). Singapore is silent. New York: Harcourt, Brace and company.
(Call no.: RDET 940.5425 WEL)
This information is as valid as at 2007 and correct as far as we are able to ascertain from our sources. It is not intended to be an exhaustive or complete history of the subject. Please contact the Library for further reading materials on the topic.
Citigroup (2002). Citibank: A century in Asia. (pp. 13, 20, 33, 35, 39, 50, 55, 68-75, 78, 87,97, 114, 140, 152, 160, 196). Singapore: Editions Didier Millet.
(Call no.: RSING q332.12095957 STA)
Weller, G. (1943). Singapore is silent. New York: Harcourt, Brace and company.
(Call no.: RDET 940.5425 WEL)
This information is as valid as at 2007 and correct as far as we are able to ascertain from our sources. It is not intended to be an exhaustive or complete history of the subject. Please contact the Library for further reading materials on the topic.
Subject
Organisations>>Companies
Banks and banking--Singapore
Business, finance and industry>>Finance>>Banking>>International banks