LONDON (Sputnik) — According to HSBC Chairman Douglas Flint, the review may to take up to six months.
“As part of the broader strategic review taking place, the board has therefore now asked management to commence work to look at where the best place is for HSBC to be headquartered in this new environment.”
In 2010, the UK government introduced a bank tax to fund its financial system rescue efforts. Since then, it has raised the tax nine times. As a result, HSBC’s payment has more than doubled since 2012. In 2014, HSBC paid about $1.1 billion on the tax, over an one-year profit of $13.7 billion.
On March 5, the UK Parliament approved the Banking Reform Act which strengthened regulation of the UK banking system.
In particular, the reforms put the Bank of England back at the center of the supervisory regime, “with new powers to identify and address systemic risks as they emerge, ensuring safer banks that are less likely to bring down the economy in the future,” according to the UK government statement.
Hong Kong Monetary Authority welcomed HSBC’s decision to consider moving its headquarters from the UK.
