The Hang Seng Bank stepped in and bailed out the lender with a cash injection of HK$150 million in December 1985.
Hang Seng assumed management control of the failed bank in June 1986, injected a total of HK$330 million, and rapidly returned it to profit. A number of unprofitable branches were closed down. The injection was transformed into a 50.3% stake, which was sold on.
Legislative council approved an appropriation of HK$10 million to investigate possible criminal acts which may have caused the collapse of this and two other institutions. The Commercial Crime Bureau was brought in, and investigators established the bank had collapsed on doubtful loans of $275 million relating to the personal affairs of Albert Kwok the General Manager, who died in April 1986.
Dah Sing Bank became the eventual owners of the bank.