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The history of banking in Singapore began with the arrival of financial institutions, such as agency houses and Chettiar moneylenders, to support European investment into the Malayan commodities trade such as rubber plantations and tin mining. The diversification of the Malayan economy and growing local business interests motivated the founding of the first local banks by Chinese businessmen. As part of it's economic planning and development after the Independence of Singapore, the Singapore government established both the Development Bank of Singapore in 1968 and the Monetary Authority of Singapore in 1971, which facilitated government regulation and direction over the Singapore economy. By the 21st-century, local banks such as OCBC Bank, DBS Bank and United Overseas Bank grew to compete with foreign banks in both the local and regional financial markets, contributing to Singapore's position as a regional financial hub.

Transition towards Capital-Intensive Investment
In the late 19th-Century, local Malayan business interests were predominated Chinese businessmen who competed with larger European corporations for a portion of the local commodity export economy. Initially, Chinese businesses specialised in labour-intensive investments to compete with European businesses. However, technological innovations in industry, agriculture, and infrastructure transitioned the local economy towards capital-intensive investments, which favoured European businesses due to their access to favourable credit from well-funded western banks. Meanwhile, capital-intensive investments increased local demand for financial services such as insurance and credit.

Abolition of Revenue Farming
In the 19th-Century, the British colonial government had relied on the revenue farming system (government-sanctioned monopolies on sales or licensing revenue, especially opium) to generate tax revenue. These revenue farms were mostly operated by Chinese businessmen, who used the revenue farms to accumulate capital for investment. However, by the end of the 19th-Century, the revenue farming system was gradually phased out, motivating Chinese businessmen to diversify into financial services and other industries.

Barriers to Financial Capital
For Chinese businessmen looking for capital to finance business expansion, financing business expansion through debt was expensive due to unfavourable conditions set by European banks and Chettiars, who dominated the Malayan capital market. European banks were unwilling to loan money to Chinese businessmen, or charged high interests for their loans, and few Chinese businessmen had accounts in European banks. Similarly, loans from Chettiar firms came with 24-36% interest rates attached, which made Chettiar loans impractical for financing business investments. Thus, increasing demands for financial services and financial capital among the Chinese business community thus motivated the establishment of independent Chinese banks.

Establishment of Local Banks
With no Malay or Indian banks established before the war, local banking before World War II was dominated by Chinese banks.

The Three Hokkien Banks
Chinese Commercial Bank The Ho Hong Bank Overseas-Chinese Bank

The operations of the three Hokkien banks saw three key features in Chinese finance in Singapore – the introduction of modern financial services, the cooperation of English- and Chinese-educated expertise, and the overlap of individuals between positions across the three banks.

Structure and Management of Chinese banks
Bang Affiliation

active managerial role of early directors

industries associated with the banks’ shareholders.