Cathay Bank was founded in 1962 as the first commercial bank to provide financial services to the unserved Chinese community in Los Angeles. Cathay Bank, through the Cathay Bank Foundation, raised $600,000 in philanthropic donations to support the relief efforts for the devastating Southern California wildfires. Los Angeles is Cathay Bank’s home base, and where its team members and countless local businesses have built their lives. Cathay Bank considers it its civic duty to help the city recover and rebuild. The funds provided emergency aid, shelter, and resources to local nonprofit organizations. The bank also introduced relief programs for affected clients and businesses.
At the heart of these initiatives is Cathay Bank’s Executive Chairman, Dr. Dunson K. Cheng. His guiding philosophy of “leading with heart” has been key to transforming Cathay Bank from a local community bank to one of the largest Chinese American financial institutions in the U.S.
Dr. Cheng moved from Hong Kong to the U.S. in 1963, earning dual bachelor’s degrees in applied mathematics and physics from the University of Wisconsin, followed by a Ph.D. in physics from Stony Brook University, where he studied under Nobel laureate Yang Chen-Ning.
Initially aspiring to be a scientist, he shifted his focus to finance when research funding declined after the end of the space race in 1975. His pivot proved to be successful. Dr. Cheng, once a client of Cathay Bank, was appointed President and Chief Executive Officer in 1985, a position he held until 2016, when the board named him Executive Chairman.
Despite numerous hardships, from labor trafficking to the Chinese Exclusion Act, Chinese immigrants slowly began to grow in Los Angeles. Under Dr. Cheng’s leadership, Cathay Bank expanded along with it and significantly supported the Chinese American local and business communities, earning him the Dr. Dan S. Louie Jr. Lifetime Achievement Award from the Los Angeles Chinese American Museum in 2017.
In the mid-1900s, Chinatown Los Angeles was home to a small Chinese population. There were very few growth and business opportunities because of the inability to obtain credit from traditional banking institutions. Cathay Bank was founded to support the community’s growing needs as it developed. Thus, after the establishment of Cathay, rapid growth in credit demand occurred, particularly in auto and small business loans. In 1966, the bank expanded to its current headquarters in Chinatown, which evolved into a cultural landmark of Chinatown.
Cathay Bank went public in 1990 with a listing on Nasdaq. Over time, the bank merged with General Bank, and acquired institutions such as HSBC USA’s 10 West Coast branches and Far East National Bank, growing into one of the largest Chinese American financial groups in the U.S. Today, Cathay Bank has over 60 branches across the U.S. and Hong Kong, with representative offices in Beijing, Shanghai, and Taipei.
In times of rising anti-Asian sentiments, Cathay Bank’s efforts to spread love and highlight the contributions of the Asian community are vital.
Cathay Bank has been committed to social responsibility as it grows. In its early years, the bank held charity golf tournaments to support local community developments. Today, the bank’s foundation raises $2 million annually to support a range of nonprofit organizations focused on the arts, health, and the environment, contributing $40 million over the past two decades. The bank is proud to be part of the growth of businesses and communities it serves.
With the rise of digital banking and cryptocurrency, Cathay Bank is adapting to such changes while remaining confident of the relevancy of traditional banking.
The bank is committed to continuously enhancing its services by offering a comprehensive banking experience and exploring the latest digital banking solutions. From Consumer and Commercial Lending to Wealth Management and Investment Solutions, Cathay Bank strives to expand its reach, foster growth, and build lasting, meaningful relationships.
This article does not constitute legal, accounting or other professional advice. Although the information contained herein is intended to be accurate, Cathay Bank does not assume liability for loss or damage due to reliance on such information.
