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

The announcement comes in view of the UK 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.

Contrary to other banks in the UK, HSBC will not be utilising the UK Government capitalisation scheme because of its financial strength. UK subsidiary, HSBC Bank 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 around £2 billion of three-month and six-month money to other banks.

HSBC believes its actions will contribute to easing the strain in UK money markets, where the availability of three-month and six-month interbank loans has been very tight in recent weeks.