British banking giant, HSBC, is closing its wealth and
personal banking business in New Zealand as part of the latest steps to move
away from the less profitable businesses and to focus on the Asian market.
According to a
report by Reuters, the London and Hong Kong dual-listed lender said it would, however, maintain its wholesale banking business in New Zealand. The business comprises commercial banking,
financial institutions, government as well as markets and securities services.
According to a previous Reuters report, HSBC’s Chief Financial Officer, Georges Elhedery, in May said the lender was planning to exit from up to a dozen
countries to strengthen its operations in Asia. This is even as the multinational investment bank previously shuttered its services in France, Russia, Greece, and Canada.
The closure of New Zealand’s section of the bank’s business will
happen in several years and in a phased manner, the publication said in the
statement, quoting a spokesperson who added that the lender can “no
longer justify investing into this business given the changing operating
requirements in the market and scalability of the business.”
In light of the same,
HSBC is reportedly assisting its local clients in New Zealand to transfer to other personal and wealth service providers, and in the coming weeks, it
would operate its business in the region as usual, the spokesperson said.
HSBC Launches Innovation Banking Unit
Besides the shifting
focus of HSBC’s global business, the lender recently announced that it was
launching an innovation
division that
integrates Silicon Valley Bank (SVB) UK, a subsidiary of the US-based lender
SVB, which collapsed early this year. Dubbed HSBC Innovation Banking, the new division plans to promote
companies in the technology sectors.
HSBC UK Bank plc, the
subsidiary of the banking behemoth, acquired
SVB UK in March for a symbolic one pound. This was after the US
authorities ordered the closure of SVB in a move that triggered a
global banking crisis, mostly affecting digital assets.
Meanwhile, the US
derivatives regulator, Commodities Futures and Trading Commission (CFTC), fined
HSBC Bank US$45
million in May for what it termed ‘manipulative and deceptive trading’ by its
traders. CFTC also faulted the lender for not maintaining proper communication
records.
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British banking giant, HSBC, is closing its wealth and
personal banking business in New Zealand as part of the latest steps to move
away from the less profitable businesses and to focus on the Asian market.
According to a
report by Reuters, the London and Hong Kong dual-listed lender said it would, however, maintain its wholesale banking business in New Zealand. The business comprises commercial banking,
financial institutions, government as well as markets and securities services.
According to a previous Reuters report, HSBC’s Chief Financial Officer, Georges Elhedery, in May said the lender was planning to exit from up to a dozen
countries to strengthen its operations in Asia. This is even as the multinational investment bank previously shuttered its services in France, Russia, Greece, and Canada.
The closure of New Zealand’s section of the bank’s business will
happen in several years and in a phased manner, the publication said in the
statement, quoting a spokesperson who added that the lender can “no
longer justify investing into this business given the changing operating
requirements in the market and scalability of the business.”
In light of the same,
HSBC is reportedly assisting its local clients in New Zealand to transfer to other personal and wealth service providers, and in the coming weeks, it
would operate its business in the region as usual, the spokesperson said.
HSBC Launches Innovation Banking Unit
Besides the shifting
focus of HSBC’s global business, the lender recently announced that it was
launching an innovation
division that
integrates Silicon Valley Bank (SVB) UK, a subsidiary of the US-based lender
SVB, which collapsed early this year. Dubbed HSBC Innovation Banking, the new division plans to promote
companies in the technology sectors.
HSBC UK Bank plc, the
subsidiary of the banking behemoth, acquired
SVB UK in March for a symbolic one pound. This was after the US
authorities ordered the closure of SVB in a move that triggered a
global banking crisis, mostly affecting digital assets.
Meanwhile, the US
derivatives regulator, Commodities Futures and Trading Commission (CFTC), fined
HSBC Bank US$45
million in May for what it termed ‘manipulative and deceptive trading’ by its
traders. CFTC also faulted the lender for not maintaining proper communication
records.
BidFX hires eFX expert; Orbex’s prepaid card; read today’s news nuggets.
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- Source: https://www.financemagnates.com//institutional-forex/hsbc-shutters-new-zealand-wealth-and-personal-banking-operations/
