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The Hongkong and Shanghai Banking Corporation (HSBC) Singapore is planning to transfer its retail banking and wealth management (RBWM) division to a locally incorporated subsidiary named HSBC Bank (Singapore).
Expected to become operational from 9 May this year, the subsidiary will be responsible for managing all the accounts, assets and security arrangements associated with the RBWM unit.
The transfer of operations is subject to regulatory and court approvals.
HSBC Bank (Singapore) will possess a full bank license with qualifying full bank privileges, which will allow the subsidiary to open more branches than other foreign banks, straitstimes reported.
The move follows an announcement by the Monetary Authority of Singapore (MAS) in April last year that HSBC is considered one of seven domestic systemically important banks in Singapore, according to media sources.
According to MAS, banks with a significant retail presence must locally incorporate their retail operations, a move that could help the Singapore financial system to function properly.
HSBC Singapore CEO Guy Harvey-Samuel was quoted by Channel NewsAsia as saying: “The transfer of our retail banking and wealth management business in Singapore to a locally incorporated subsidiary reflects the success, scale of growth and significance of our retail business in this market.”
HSBC’s other activities including commercial banking, private banking and global banking will continue to operate under the existing Singapore branch.
“Singapore is a top-seven priority country for the HSBC Group globally and we will continue to invest in our business here. We are excited about new opportunities to further expand our presence,” Harvey-Samuel was quoted by straitstimes.
