HSBC to locally incorporate its Singapore retail operations in May
In this article (5)
In order to follow new MAS regulations.
HSBC will transfer its local retail banking and wealth management business, which is currently under the HSBC Singapore Branch, to a locally incorporated subsidiary, HSBC Bank (Singapore) Limited.
The transfer of HSBC’s retail banking and wealth management business is expected to take effect on 9 May 2016, subject to the receipt of regulatory and court approvals.
The move comes after Monetary Authority of Singapore tagged HSBC as one of seven domestic systemically important banks (D-SIBS). Under a new regulatory framework announced in April 2015, all D-SIBS should locally incorporate their retail operations to allow the MAS to set targeted and appropriate policy measures specifically for the systemically important banks.
The other D-SIBS are DBS, OCBC, UOB, Citibank, Malayan Banking and Standard Chartered.
Questions & Answers
Q.Why is HSBC transferring its retail banking and wealth management business to a local subsidiary?
Why is HSBC transferring its retail banking and wealth management business to a local subsidiary?
HSBC is making this transfer to comply with new regulations from the Monetary Authority of Singapore. Under this framework, all domestic systemically important banks must locally incorporate their retail operations to allow for targeted policy measures.
Q.Which entity will manage HSBC's retail operations after the transfer?
Which entity will manage HSBC's retail operations after the transfer?
After the transfer, HSBC's retail banking and wealth management business will be managed by HSBC Bank (Singapore) Limited. This new subsidiary will take over operations currently handled by the HSBC Singapore Branch.
Q.What is the anticipated date for this transfer to take effect?
What is the anticipated date for this transfer to take effect?
The transfer of HSBC’s retail banking and wealth management business is expected to take effect on 9 May 2016. This is still subject to the necessary regulatory and court approvals being received beforehand.
Q.Which other banks are classified as domestic systemically important banks (D-SIBS) in Singapore?
Which other banks are classified as domestic systemically important banks (D-SIBS) in Singapore?
In addition to HSBC, DBS, OCBC, UOB, Citibank, Malayan Banking, and Standard Chartered are also classified as domestic systemically important banks. These banks are subject to the same new regulatory framework.
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