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HSBC welcomes UK government's announcement
08 October 2008
HSBC's UK subsidiary will observe the tier 1 capital ratio requirement, funded from HSBC's internal resources
HSBC Holdings plc has no plans to utilise the recapitalisation scheme
HSBC welcomes the UK government's proposals to provide liquidity and inject capital into the UK banking system. These are important and necessary steps in restoring confidence to the sector.
Consistent with the objectives of the UK scheme announced today, HSBC will ensure that our principal UK subsidiary, HSBC Bank plc, continues to be appropriately capitalised, funded from the Group's internal resources. HSBC therefore has no current plans to utilise the UK recapitalisation initiative.
The HSBC Group supports efforts to stabilise the operation of financial markets and yesterday provided significant amounts of liquidity to the London Sterling interbank market, lending around £2 billion of three-month and six-month money to other banks. HSBC expects to be very active in the London interbank market again today. HSBC believes its actions will contribute to easing the strain in UK money markets, where the availability of three-month and six-month interbank loans has been very tight in recent weeks.
HSBC operates in 85 countries and territories worldwide, including the UK which represented approximately one quarter of our global profits in 2007. With a market capitalisation of US$190 billion (as at 7 October 2008), the HSBC Group is one of the world's largest financial services organisations. Over 100 million customers worldwide entrust HSBC with US$1.2 trillion in deposits. With a tier one capital ratio of 8.8% and a loan to deposit ratio of 90% as at 30 June 2008, the Group remains one of the most strongly capitalised and liquid banks in the world.
Media enquiries
Patrick McGuinness on 020 7991 0111 or at Patrickmcguinness@hsbc.com
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