In order to follow new MAS regulations.
The Hongkong and Shanghai Banking Corporation revealed that it will incorporate its Singapore subsidiary in May.
HSBC will transfer its local retail banking and wealth management business, which is currently under the HSBC Singapore Branch, to a locally incorporated subsidiary, HSBC Bank (Singapore) Limited.
The transfer of HSBC’s retail banking and wealth management business is expected to take effect on 9 May 2016, subject to the receipt of regulatory and court approvals.
The move comes after Monetary Authority of Singapore tagged HSBC as one of seven domestic systemically important banks (D-SIBS). Under a new regulatory framework announced in April 2015, all D-SIBS should locally incorporate their retail operations to allow the MAS to set targeted and appropriate policy measures specifically for the systemically important banks.
The other D-SIBS are DBS, OCBC, UOB, Citibank, Malayan Banking and Standard Chartered.
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