The Federal Deposit Insurance Corporation in the US has announced its receivership of United Commercial Bank and the acquisition of United Commercial Bank globally by the East West Bank under an agreement between the corporation and the East West Bank.

Under the agreement, the assets and liabilities in respect of the operations of United Commercial Bank Hong Kong Branch will be transferred to the East West Bank, the Monetary Authority said today.

The East West Bank will make available adequate financial resources to fully meet all of the obligations of UCBHK, which include its deposit liabilities. The UCBHK deposits will continue to be covered by the deposit protection scheme and the Government deposit guarantee currently in force in Hong Kong.

The East West Bank will notify UCBHK depositors of the necessary arrangements to transfer their deposits.

Financial Secretary John Tsang said there is no worry for UCBHK depositors because the East West Bank, which has taken over the UCBHK, has also taken charge of all the deposits.

"It has no implication for Hong Kong's financial system. Our system is very stable. This is something that took place in the US. It would not have any significant contagion on Hong Kong's financial system."

If the depositors choose not to transfer their deposits, the East West Bank will continue to allow UCBHK depositors to have full access to their deposits for withdrawing such funds.