Perspective

Western central banks abruptly shut down the Bank of Credit and Commerce International (BCCI) in 1991, citing sensational allegations. Claims that BCCI had a criminal culture were later withdrawn. The closure affected 14,000 employees and about one million customers worldwide, causing hardship and stigma. Notably, large international banks accused of similar violations faced only fines. Contrary to reports, BCCI was not bankrupt; depositors recovered at least 90% of their claims, and in Hong Kong, over 100%, despite about US$1.7 billion in liquidation costs.