HSBC does not plan to utilise UK rescue initiative

HSBC has no plans to utilise the UK recapitalisation initiative because its principal UK subsidiary continues to be appropriately capitalised and funded from the group's internal resources, reflecting HSBC Group's financial strength.

The announcement comes in view of British government's proposals to provide liquidity and inject capital into the UK banking system. This issue relates to the UK Bank and has no direct implication for Malta, HSBC Malta said.

Contrary to other banks in the UK, HSBC said it will not be utilising the UK government capitalisation scheme because of its financial strength. The UK subsidiary, HSBC Bank plc UK, will observe the capital requirements through HSBC's significant own resources.

In a statement released to stock exchanges around the world, HSBC Group said it supported the UK government's efforts to stabilise the operation of financial markets and in addition provided significant amounts of liquidity to the London Sterling interbank market, lending about £2 billion in three-month and six-month money to other banks.

"The group's announcement to the stock exchanges in light of Wednesday's development in the UK banking market simply reinforces HSBC's global financial strength. This should give shareholders, customers, investors and staff even more confidence in the group," HSBC Malta CEO Alan Richards said.