27th Apr 2015 05:22
LONDON (Alliance News) - HSBC Holdings PLC is mulling the spin-off of its UK retail bank into a separate business for about GBP20 billion, the Sunday Times newspaper reported. A deal could revive the old Midland Bank, which was bought by the lender in 1992.
The move comes amid government requirements that banks separate their retail business from the rest of their operations as of 2019.
The lender said Friday that it would review whether to move its headquarters out of the UK, as the Asia-focused bank grapples with higher taxes and regulatory costs in the country.
Banks have been worried about the move by the UK to raise the bank levy, which was introduced in 2010 and is determined as a percentage of a bank's balance sheet. HSBC, which paid a levy of USD1.1 billion last year, is expected to pay USD1.5 billion this year.
Copyright RTT News/dpa-AFX
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