HSBC Completes ‘ring-fencing’ of UK High Street Banking Unit

HSBC Completes ‘ring-fencing’ of UK High Street Banking Unit

HSBC successfully has completed the establishment of the UK ring-fencing business, in agreement with the government of the U.K requirement. However, HSBC relocated all U.K businesses to Birmingham, according to HSBC, all retail banking and its operations have been generally being separated from other forms of businesses in the whole of U.K.

Nevertheless, ring-fencing in the U.K banks has imposed the biggest structural reforms. Due to the imposed structural reform, banks in the U.K are required to have more than 25 billion euros deposited for the banks to literary separate all their essential banking operations and foremost their investment bank services. This will be made into effect on the 1st of January 2019. This is made to prevent the financial replay which was made in 2008 due to poor bank investment decisions made per the output pressure on the ordinary taxpayer funds and big deposit bailouts.

Notably, the parenting company will own wholly this new arm of banking as it contains its separate board of directors which is currently led by a former chief executive of the London stock exchange, Dame Clara Furse. Consequently, HSBC has nearly 22,000 members as staff and owns assets worth more than 200 billion euros.

Accordingly, HSBC transfers over 400,000 customer data through nearly 250 system computers separately for production of new codes. More so the company also has rebranded all branches in the U.K to be HSBC U.K. according to this new system in banking, the new HSBC U.K with serve 14.5 million business customers, manufacturers and retail dealers all over the U.K. this includes Spencer bank, retail customer and the entire first direct branches all over the U.K.

“We are so delighted having completed the new HSBC U.K ring-fencing six months before the legal deadline. Our movement from U.K to the Birmingham and creation of the HSBC U.K branches is the most opportunity banks can ever have to be close to all its customers, communities and colleagues all over U.K.” said chief HSBC U.K executive, Ian Stuart.

HSBC’s ring-fenced new arm is basically formed and set in Birmingham. According to finance and banking services, HSBC has fully received the entire baking license required from a bank of England’s regulation and prudential authority.

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