HSBC has no plans to use British government bailout
Global giant HSBC on Wednesday welcomed the British government's massive injection of capital to try and stabilise the UK banking system, but said it had no plans to draw on the cash.
By Agencies |
HONG KONG: Global giant HSBC on Wednesday welcomed the British government's massive injection of capital to try and stabilise the UK banking system, but said it had no plans to draw on the cash.
"HSBC welcomes the UK government's proposals to provide liquidity and inject capital into the UK banking system," the company said in a statement. "These are important and necessary steps in restoring confidence to the sector."
HSBC said it would ensure that its UK subsidiary was adequately capitalised and would provide any necessary funding from the group's internal resources.
"HSBC therefore has no current plans to utilise the UK recapitalisation initiative," the statement said. HSBC said it had been very active in the British interbank market in recent days, lending around 2 billion pounds to other banks hit by the crisis on Tuesday.
"HSBC expects to be very active in the London interbank market again today (Wednesday)," the statement said. Britain's government on Wednesday announced a plan to partly nationalise some of the country's major banks to try and ease the credit crisis and prevent a collapse of the banking system.
The government said it would use 50 billion pounds (87 billion dollars) of taxpayers' money to buy major stakes in the banks, which could have included HSBC.
The three-part package also makes available 200 billion pounds in short-term loans and the government will issue 250 billion pounds to guarantee loans between banks.
An HSBC spokesman in Hong Kong said the bank had no current plans to draw on any of the new government capitalisation plans.
HSBC, which is headquartered in London, was one of the first banks to publicly raise concerns about the subprime mortgage market in the United States, which has spiralled into the current global financial crisis.
"HSBC welcomes the UK government's proposals to provide liquidity and inject capital into the UK banking system," the company said in a statement. "These are important and necessary steps in restoring confidence to the sector."
HSBC said it would ensure that its UK subsidiary was adequately capitalised and would provide any necessary funding from the group's internal resources.
"HSBC therefore has no current plans to utilise the UK recapitalisation initiative," the statement said. HSBC said it had been very active in the British interbank market in recent days, lending around 2 billion pounds to other banks hit by the crisis on Tuesday.
"HSBC expects to be very active in the London interbank market again today (Wednesday)," the statement said. Britain's government on Wednesday announced a plan to partly nationalise some of the country's major banks to try and ease the credit crisis and prevent a collapse of the banking system.
The government said it would use 50 billion pounds (87 billion dollars) of taxpayers' money to buy major stakes in the banks, which could have included HSBC.
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The three-part package also makes available 200 billion pounds in short-term loans and the government will issue 250 billion pounds to guarantee loans between banks.
An HSBC spokesman in Hong Kong said the bank had no current plans to draw on any of the new government capitalisation plans.
HSBC, which is headquartered in London, was one of the first banks to publicly raise concerns about the subprime mortgage market in the United States, which has spiralled into the current global financial crisis.
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