The Oriental Bank Corporation (), or "OBC", was a British imperial

bank A bank is a financial institution that accepts Deposit account, deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital m ...

founded in

India India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the List of countries and dependencies by area, seventh-largest country by area, the List of countries and dependencies by population, second-most populous ...

in 1842 which grew to be prominent throughout the

Far East The ''Far East'' was a European term to refer to the geographical regions that includes East and Southeast Asia as well as the Russian Far East to a lesser extent. South Asia is sometimes also included for economic and cultural reasons. The t ...

. As an Exchange bank, the OBC was primarily concerned with the finance of trade and exchanges of different currencies. It was the first bank in

Hong Kong Hong Kong ( (US) or (UK); , ), officially the Hong Kong Special Administrative Region of the People's Republic of China (abbr. Hong Kong SAR or HKSAR), is a List of cities in China, city and Special administrative regions of China, special ...

and the first bank to issue

banknote A banknote—also called a bill (North American English), paper money, or simply a note—is a type of negotiable instrument, negotiable promissory note, made by a bank or other licensed authority, payable to the bearer on demand. Banknotes w ...

s in Hong Kong.World Paper Money Catalog and History History = Hongkong Dollar
/ref>

History

The bank was established in 1842 in

Bombay Mumbai (, ; also known as Bombay — List of renamed Indian cities and states#Maharashtra, the official name until 1995) is the capital city of the Indian States and union territories of India, state of Maharashtra and the ''de facto'' fin ...

, India, as the Bank of Western India. The bank moved its

headquarters Headquarters (commonly referred to as HQ) denotes the location where most, if not all, of the important functions of an organization are coordinated. In the United States, the corporate headquarters represents the entity at the center or the to ...

from

London London is the capital and List of urban areas in the United Kingdom, largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary dow ...

in 1845, and opened branches in

Colombo Colombo ( ; si, කොළඹ, translit=Koḷam̆ba, ; ta, கொழும்பு, translit=Koḻumpu, ) is the executive and judicial capital and largest city of Sri Lanka by population. According to the Brookings Institution, Colombo me ...

(1843),

Calcutta Kolkata (, or , ; also known as Calcutta , the official name until 2001) is the capital of the Indian state of West Bengal, on the eastern bank of the Hooghly River west of the border with Bangladesh. It is the primary business, commer ...

(1844),

Shanghai Shanghai (; , , Standard Chinese, Standard Mandarin pronunciation: ) is one of the four Direct-administered municipalities of China, direct-administered municipalities of the China, People's Republic of China (PRC). The city is located on the ...

(1845),

Canton Canton may refer to: Administrative division terminology * Canton (administrative division), territorial/administrative division in some countries, notably Switzerland * Township (Canada), known as ''canton'' in Canadian French Arts and ente ...

(1845),

Singapore Singapore (), officially the Republic of Singapore, is a sovereign island country and city-state in maritime Southeast Asia. It lies about one degree of latitude () north of the equator, off the southern tip of the Malay Peninsula, bor ...

(1846), and

(1846). The Bank acquired the failing

Bank of Ceylon Bank of Ceylon (BOC; Sinhala: ලංකා බැංකුව ''Lanka Bænkuwa'', Tamil: இலங்கை வங்கி ''Ilangai Vangi'') is a state-owned, major commercial bank in Sri Lanka. Its head office is located in an iconic cy ...

in 1850, and obtained a royal charter for the merged institution under the name Oriental Bank Corporation in 1851. It was chartered in 1851 to allow competition with the

East India Company The East India Company (EIC) was an English, and later British, joint-stock company founded in 1600 and dissolved in 1874. It was formed to trade in the Indian Ocean region, initially with the East Indies (the Indian subcontinent and Sou ...

opium Opium (or poppy tears, scientific name: ''Lachryma papaveris'') is dried latex obtained from the seed capsules of the opium poppy '' Papaver somniferum''. Approximately 12 percent of opium is made up of the analgesic alkaloid morphine, which ...

billing

monopoly A monopoly (from Greek language, Greek el, μόνος, mónos, single, alone, label=none and el, πωλεῖν, pōleîn, to sell, label=none), as described by Irving Fisher, is a market with the "absence of competition", creating a situati ...

, which was unpopular in

England England is a country that is part of the United Kingdom. It shares land borders with Wales to its west and Scotland to its north. The Irish Sea lies northwest and the Celtic Sea to the southwest. It is separated from continental Europe ...

at the time. Expansion followed with additional branches opening in

Mauritius Mauritius ( ; french: Maurice, link=no ; mfe, label= Mauritian Creole, Moris ), officially the Republic of Mauritius, is an island nation in the Indian Ocean about off the southeast coast of the African continent, east of Madagascar. It ...

, Madras (

Chennai Chennai (, ), formerly known as Madras ( the official name until 1996), is the capital city of Tamil Nadu, the southernmost Indian state. The largest city of the state in area and population, Chennai is located on the Coromandel Coast of th ...

Thalassery Thalassery (), formerly Tellicherry, is a municipality, Commercial City on the Malabar Coast in Kannur district, in the state of Kerala, India, bordered by the districts of Mahé (Pondicherry), Kozhikode, Wayanad, Kasaragod and Kodagu (K ...

Melbourne Melbourne ( ; Boonwurrung/ Woiwurrung: ''Narrm'' or ''Naarm'') is the capital and most populous city of the Australian state of Victoria, and the second-most populous city in both Australia and Oceania. Its name generally refers to a metro ...

Sydney Sydney ( ) is the capital city of the state of New South Wales, and the most populous city in both Australia and Oceania. Located on Australia's east coast, the metropolis surrounds Sydney Harbour and extends about towards the Blue Mounta ...

Auckland Auckland (pronounced ) ( mi, Tāmaki Makaurau) is a large metropolitan city in the North Island of New Zealand. The most populous urban area in the country and the fifth largest city in Oceania, Auckland has an urban population of about ...

Wellington Wellington ( mi, Te Whanganui-a-Tara or ) is the capital city of New Zealand. It is located at the south-western tip of the North Island, between Cook Strait and the Remutaka Range. Wellington is the second-largest city in New Zealand by metr ...

, Port Elizabeth,

Durban Durban ( ) ( zu, eThekwini, from meaning 'the port' also called zu, eZibubulungwini for the mountain range that terminates in the area), nicknamed ''Durbs'',Ishani ChettyCity nicknames in SA and across the worldArticle on ''news24.com'' from ...

, Foochow ( Fuzhou),

Yokohama is the second-largest city in Japan by population and the most populous municipality of Japan. It is the capital city and the most populous city in Kanagawa Prefecture, with a 2020 population of 3.8 million. It lies on Tokyo Bay, south of T ...

, Hiogo ( Kobe), and

San Francisco San Francisco (; Spanish for " Saint Francis"), officially the City and County of San Francisco, is the commercial, financial, and cultural center of Northern California. The city proper is the fourth most populous in California and 17th ...

. By the 1860s, the bank held a dominant position in India and China and was considered the “most powerful, oldest, and most prestigious Eastern exchange bank,” and “the doyen of Eastern exchange banking.” From the 1870s, the bank's finances suffered greatly from bad loans to coffee

plantations A plantation is an agricultural estate, generally centered on a plantation house, meant for farming that specializes in cash crops, usually mainly planted with a single crop, with perhaps ancillary areas for vegetables for eating and so on. Th ...

in Ceylon (now Sri Lanka), and to sugar

. On May 2, 1884 the bank suspended payment and it was subsequently liquidated in a Chancery proceeding. The majority of its branches and staff were sold to a new corporation and its business reconstituted as the New Oriental Bank Corporation. With growing competition from rivals, the

Hongkong and Shanghai Banking Corporation The Hongkong and Shanghai Banking Corporation Limited (), commonly known as HSBC (), was the parent entity of the multinational HSBC banking group until 1991, and is now its Hong Kong-based Asia-Pacific subsidiary. The largest bank in Hong K ...

and

Chartered Bank of India, Australia and China The Chartered Bank of India, Australia and China (informally The Chartered Bank) was a bank incorporated in London in 1853 by Scotsman James Wilson, under a Royal Charter from Queen Victoria.

, the bank failed to survive and once again failed in 1892, an early victim of the impending trouble of 1893.The Rise and Fall of the Oriental Bank in the Nineteenth Century:
by John McGuire, Department of Social Sciences, Curtin University of Technology
archival material

References

{{Banking in India Banks established in 1842 Banks disestablished in 1892 Defunct banks of the United Kingdom Defunct banks of India Defunct banks of Hong Kong Former banknote issuers of Hong Kong British overseas banks

History

See also

References