HSBC Head Office to remain in London

Europe’s biggest bank,HSBC   reviewed it’s position either to keep it’s Head Office in London or to   move elsewhere, with Hong Kong seen as the most likely alternative. Review was due to bank’s concerns about stricter UK regulations.After the review, UK banking giant HSBC has announced it is to keep its headquarters in London.

London “offered the best outcome for our customers and shareholders”,Bank said.The decision was seen as a vote of confidence for the UK.In a statement, HSBC said that London had an “internationally respected regulatory framework and legal system” and added that it also was “home to a large pool of highly skilled, international talent”.

It was therefore “ideally positioned to be the home base for a global financial institution such as HSBC”.Part of the review was considering whether the increased regulation of the banking industry in the UK – in particular the increased tax burden – warranted moving elsewhere.

But in the last Budget, the Chancellor George Osborne introduced a gradual reduction in the bank levy on balance sheets – a move which particularly affected HSBC, because of its large balance sheet.In 2014 it paid £750m of the £1.9bn raised by the government through that particular tax.