8-K

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

         Date of Report (Date of earliest event reported): July 9, 1998

                          CRESTAR FINANCIAL CORPORATION
             (Exact name of registrant as specified in its charter)

Virginia                            1-7083                  54-0722175
(State or other jurisdiction        (Commission             (IRS Employer
of incorporation)                   File Number)            Identification No.)

         919 East Main Street                              23261-6665
         Richmond, Virginia                                (Zip Code)
         (Address of principal executive offices)

                                 (804) 782-5000
              (Registrant's telephone number, including area code)

Item 5.  Other Events

     This  Current  Report on Form 8-K is being  filed in order to include as an
exhibit  hereto  the July 9, 1998  press  release  issued by  Crestar  Financial
Corporation  announcing  the purchase by Fleet  Financial  Group of a portion of
Crestar Bank's bank card loan portfolio. Under terms of the transaction, Crestar
Bank anticipates recording a gain, net of transaction costs, of approximately
$54 million (pre-tax). Crestar  Bank  is a  wholly-owned subsidiary of Crestar
Financial Corporation.

Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.

(a) Financial Statements of Businesses Acquired.
None.

(b) Pro Forma Financial Information.
None.

(c) Exhibits.
Exhibit No. 99.1           Press release dated July 9, 1998.

                                   SIGNATURES

     Pursuant to the  requirements  of the  Securities and Exchange Act of 1934,
the  registrant  has duly  caused  this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                            CRESTAR FINANCIAL CORPORATION

Date:  July 9, 1998                 By:     /s/ James D. Barr
                                            -----------------
                                            James D. Barr
                                            Group Executive Vice President,
                                            Controller and Treasurer

EX-99

                                  EXHIBIT 99.1


                                                                  [Crestar logo]

News
- --------------------------------------------------------------------------------


Contact: Barry Koling                       Eugene S. Putnam, Jr.
         Corporate Communications           Investor Relations
         (804) 782-7845                     (804) 782-5619


For Release July 9, 1998

Fleet Financial Group To Purchase Block of Crestar Bank Card Accounts

Richmond,  Virginia -- Crestar Bank announced  today that Fleet  Financial Group
will  purchase  an  unspecified  portion of  Crestar's  $1.1  billion  bank card
portfolio.  The accounts and balances  represent  performing  loans to borrowers
located     outside     Crestar's      primary      geographic     market     of
Virginia-Maryland-Washington, D.C. Crestar continues as a major provider of bank
cards and other consumer finance products.

Under terms of the transaction  announced today, Crestar anticipates recording a
gain,  net  of  transaction   costs,  of  approximately  $54  million.   Crestar
anticipates  a  portion  of the gain will be used to cover  certain  incremental
expenses during the third quarter of 1998,  with the balance  reflected in third
quarter earnings.

"The  sale of this  portion  of our  bank  card  portfolio  is  consistent  with
Crestar's  stated  strategy of focusing  primarily  on providing a wide range of
financial  services to customers in our geographic  footprint,"  said William V.
Bunting,  Crestar's  Group  Executive Vice President for Consumer  Finance.  Mr.
Bunting said the decision to sell a portion of the bank card  portfolio was made
as part of Crestar's process of "always looking at individual  business lines to
ensure consistency with corporate strategic considerations."

Mr. Bunting said approximately 75 employees are affected by the sale but that no
layoffs will occur. All employees involved will be offered opportunities to fill
existing and upcoming vacancies within Crestar.

Crestar Bank is a unit of the $26.2 billion-asset Crestar Financial Corporation,
based in Richmond,  Virginia. Crestar offers a broad range of financial services
to consumers,  businesses,  institutions and governmental customers in Virginia,
Maryland  and  Washington,  D.C.  Crestar's  multi-channel  distribution  system
includes  396  banking  offices,  684  ATMs  and a  complete  range  of  24-hour
electronic  banking  alternatives  such as telephone,  PC and Internet  banking.
Other Crestar  subsidiaries provide insurance,  mortgage banking,  equipment and
automobile leasing and full-service securities and investment advisory services.

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