HSBC’s Singapore Retail Banking and Wealth Management business is considered systemically important for the lion state. This has consequences.
British banking giant HSBC is about to subsidiarise its Retail Banking and Wealth Management business in Singapore (RBWM Business), according to a statement sent on Friday.
This move involves the transfer of the RBWM Business under the current HSBC Singapore Branch to a locally incorporated subsidiary, HSBC Bank (Singapore) Limited. The Subsidiary will thereafter oversee the running of all operations of the RBWM Business in Singapore.
One of Seven
The transfer of the RBWM Business is expected to take effect on 9 May 2016, subject to the receipt of regulatory and court approvals.
HSBC Singapore Branch’s move follows the announcement by the Monetary Authority of Singapore in April 2015 that HSBC is considered one of seven domestic systemically important banks (D-SIBs) in Singapore.
Systemic Importance
D-SIBs are assessed to have the potential to have a significant impact on the Singapore financial system’s stability and the proper functioning of Singapore’s broader economy. All banks in Singapore have to undergo an assessment of their systemic importance each year.
«This transfer reflects the success, scale of growth and significance of our retail business in this market,» said Guy Harvey-Samuel, HSBC’s Chief Executive Officer for Singapore, in a statement on Friday.
Continue to Invest
«But even more importantly, this move demonstrates HSBC’s strong and long-term commitment to the Singapore market,» he added, and: «Singapore is a top-seven priority country for the HSBC Group globally and we will continue to invest in our business here.»
