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{{about|the bank in the UK|the global HSBC Group|HSBC|other individual entities of the group|HSBC Bank}}
{{about|the bank in the UK|the global HSBC Group|HSBC|other individual entities of the group|HSBC Bank}}
{{EngvarB|date=September 2017}}
{{EngvarB|date=September 2017}}
{{Use dmy dates|date=September 2017}}
{{Use dmy dates|date=November 2022}}
{{Infobox company
{{Infobox company
| name = HSBC Bank PLC
| name = HSBC UK Bank plc
| logo = HSBC logo (2018).svg
| logo = HSBC UK logo.svg
| image = HSBC Bank Building, Newbury - geograph.org.uk - 7390.jpg
| image = File:One Centenary Square.jpg
| image_size = 250px
| image_size = 250px
| image_caption = HSBC Branch in Newbury
| image_caption = HSBC UK head office at [[One Centenary Square]], [[Birmingham]]
| former_name = {{Ubl
| type = Subsidiary
| HSBC UK RFB Limited (2015{{endash}}2017)
| foundation = {{bulleted list
| HSBC UK RFB Plc (8{{endash}}21 August 2017)<ref name="CompaniesHouse">{{Cite web |date=2015-12-23 |title=HSBC UK BANK PLC overview - Find and update company information - GOV.UK |url=https://find-and-update.company-information.service.gov.uk/company/09928412 |access-date=2024-01-22 |website=[[Companies House]] |language=en}}</ref>
|1= 1836; 184 years ago in [[Birmingham]], [[Great Britain]] (as the '''Birmingham and Midland Bank''')
}}

| type = [[Subsidiary]]
|2= 1865; 155 years ago in [[Hong Kong]] (as '''The Hongkong and Shanghai Banking Corporation''')
| predecessor = [[Midland Bank]]

| foundation = {{Unbulleted list
|3= 2015; 6 years ago (rebranded as '''HSBC UK''')
|1= {{start date and age|1836|8|22|df=y}} in [[Birmingham]], [[Great Britain]] (as the '''Birmingham and Midland Bank''')

|2= {{start date and age|2018|1|1|df=y}} (rebranded as '''HSBC UK''')}}
| location = 1 [[Centenary Square]], [[Birmingham]], England, UK
| key_people = {{Ubl
| Dame Clara Furse (Chairman)
| Ian Stuart (Chief Executive)
}}
}}
| location = [[London]], [[United Kingdom]] (Global)<br>[[Birmingham]], [[United Kingdom]] (UK)
| key_people = Stephen O’Connor<br>{{small|(Chairman)}}<br>James Emmett<br>{{small|(Chief Executive)}}
| num_employees = 85,000 (including its [[subsidiaries]])
| num_employees = 85,000 (including its [[subsidiaries]])
| industry = [[Finance and insurance]]
| industry = [[Finance and insurance]]
| products = [[Financial services]]
| products = [[Financial services]]
| parent = [[HSBC Holdings]]
| parent = [[HSBC Holdings]]
| homepage = {{URL|hsbc.co.uk/}}
| homepage = {{URL|https://hsbc.co.uk/}}
| revenue =
| revenue =
}}
}}
'''HSBC Bank plc''' is a British multinational banking and financial services organisation. HSBC's international network comprises around 7,500 offices in over 80 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa.


HSBC Bank plc is one of [[Big Four (banking)#United Kingdom|the four major clearing bank]]s in the United Kingdom and is a wholly owned subsidiary of HSBC Holdings. The business ranges from the traditional [[high street]] roles of [[personal finance]] and [[commercial banking]], to [[private banking]], [[consumer finance]] as well as [[corporate banking|corporate]] and [[investment banking]]. Across all brands the bank operates some 1800 sites in the UK.
'''HSBC UK Bank plc''' is a British multinational banking and financial services organisation based in [[Birmingham]], England. It is a wholly owned subsidiary of the global [[HSBC]] banking and financial group, which has been headquartered in London since 1993. The UK headquarters of HSBC is located at [[One Centenary Square]] in Birmingham.


HSBC UK Bank plc is one of [[Big Four (banking)#United Kingdom|the four major clearing bank]]s in the United Kingdom. The business ranges from the traditional [[high street]] roles of [[personal finance]] and [[commercial banking]], to [[private banking]], [[consumer finance]] as well as [[corporate banking|corporate]] and [[investment banking]]. Across all brands the bank operates some 1800 sites in the UK.
The UK headquarters of HSBC is located at [[One Centenary Square]] in Birmingham. The global headquarters are at HSBC Tower, [[8 Canada Square]] in the [[Canary Wharf]] area of east London. The building houses some 8,000 staff over 42 floors.


HSBC Bank plc is the only one of Britain's big five banks to hold more deposits than loans (loan:deposit ratio of 90%).<ref>{{cite news |url=https://www.bloomberg.com/apps/news?pid=20601213&sid=a8A3ZOyf8NJ0&refer=home |title=Running to HSBC Makes Shares European Bank Winner |publisher=[[Bloomberg L.P.]] | date=6 October 2008}}</ref> This has led to the bank being seen as a less risky proposition than the other banks by investors and customers, as it is able to fully fund its own operations. This also contributed to the company's share price maintaining value throughout the credit crunch, unlike other banks in the market.
HSBC UK Bank plc is the only one of Britain's big five banks to hold more deposits than loans (loan:deposit ratio of 90%).<ref>{{cite news |url=https://www.bloomberg.com/apps/news?pid=20601213&sid=a8A3ZOyf8NJ0&refer=home |title=Running to HSBC Makes Shares European Bank Winner |publisher=[[Bloomberg L.P.]] | date=6 October 2008}}</ref> This has led to the bank being seen as a less risky proposition than the other banks by investors and customers, as it is able to fully fund its own operations. This also contributed to the company's share price maintaining value throughout the credit crunch, unlike other banks in the market.


==Acquisition of Midland Bank==
==Acquisition of Midland Bank==
[[The Hongkong and Shanghai Banking Corporation]] acquired a 14.9 per cent equity interest in [[Midland Bank plc]] in 1987, and a strong working relationship developed. In 1992, HSBC Holdings plc acquired full ownership of Midland Bank. It was one of the largest acquisitions in banking history, giving HSBC the major foothold in Europe that it needed to complement its existing business in Asia and the Americas. Midland Bank was renamed HSBC Bank in 1999 as part of the adoption of the HSBC brand throughout the Group.
[[The Hongkong and Shanghai Banking Corporation]] acquired a 14.9 per cent equity interest in [[Midland Bank plc]] in 1987, and a strong working relationship developed. In 1992, HSBC Holdings plc acquired full ownership of Midland Bank. It was one of the largest acquisitions in banking history, giving HSBC the major foothold in Europe that it needed to complement its existing business in Asia and the Americas. Midland Bank was renamed HSBC Bank plc in 1999 as part of the adoption of the HSBC brand throughout the Group.


==UK banking==
==UK banking==

[[File:HSBC Building London.jpg|thumb| [[8 Canada Square]] HSBC's headquarters in London]]
Through its sister company '''HSBC UK Bank plc''' (also a wholly owned subsidiary of HSBC Holdings plc), the bank maintains a network of 594 branches throughout [[England]] and [[Wales]],<ref>{{cite news|last1=Hiscott|first1=Graham|title=Number of bank branches at lowest level for over 60 years|url=https://www.mirror.co.uk/money/city-news/number-bank-branches-lowest-level-2026807|access-date=7 November 2015|work=Daily Mirror|date=5 July 2013}}</ref> with a much smaller presence in [[Scotland]] and [[Northern Ireland]] where local banks tend to dominate. In recent years, branches have undergone a programme of rolling refurbishment, with a focus on open-plan areas, increased self-service 'Express Banking' machines, ATMs, and an improved layout.<ref>{{Cite web|url=https://www.overbury.com/our-work/case-studies/hsbc/|title=Fit Out You Can Bank on For HSBC|website=Overbury|language=en|access-date=2019-12-29}}</ref> Branches also feature HSBC Live, a radio station specifically produced for the bank by media company Immedia in [[Newbury, Berkshire]].<ref>{{Cite web|url=http://www.independent.co.uk/news/media/tv-radio/want-to-know-whos-to-blame-for-all-those-shop-radio-stations-try-bruno-brookes-6285556.html|title=Want to know who's to blame for all those shop radio stations? Try|date=2012-01-06|website=The Independent|language=en|access-date=2019-12-29}}</ref>
The bank maintains a network of 327 branches throughout [[England]] and [[Wales]],<ref>HSBC UK announces branch network plans for 2023 https://www.about.hsbc.co.uk/news-and-media/hsbc-uk-announces-branch-network-plans-for-2023#:~:text=Following%20the%20closures%2C%20HSBC%20UK,areas%20where%20branches%20are%20closing.</ref> with a much smaller presence in [[Scotland]] and [[Northern Ireland]] where local banks tend to dominate. In recent years, branches have undergone a programme of rolling refurbishment, with a focus on open-plan areas, increased self-service 'Express Banking' machines, ATMs, and an improved layout.<ref>{{Cite web|url=https://www.overbury.com/our-work/case-studies/hsbc/|title=Fit Out You Can Bank on For HSBC|website=Overbury|language=en|access-date=29 December 2019}}</ref> Branches also feature HSBC Live, a radio station specifically produced for the bank by media company Immedia in [[Newbury, Berkshire]].<ref>{{Cite web|url=http://www.independent.co.uk/news/media/tv-radio/want-to-know-whos-to-blame-for-all-those-shop-radio-stations-try-bruno-brookes-6285556.html|title=Want to know who's to blame for all those shop radio stations? Try|date=6 January 2012|website=The Independent|language=en|access-date=29 December 2019}}</ref>


In mid-2003, HSBC became the first UK high-street lender to offer [[Mortgage loan#Islamic mortgages|homebuying]] products in compliance with [[Sharia]] (Islamic) law, which prohibits the charging or payment of interest. The range now includes a bank account, home insurance policy ([[takaful]]), and home finance.
In mid-2003, HSBC became the first UK high-street lender to offer [[Mortgage loan#Islamic mortgages|homebuying]] products in compliance with [[Sharia]] (Islamic) law, which prohibits the charging or payment of interest. The range now includes a bank account, home insurance policy ([[takaful]]), and home finance.
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In April 2008, HSBC launched a campaign selling mortgages. This was seen as a risky move by media and HSBC staff due to their previous non-plus attitude building on their 3% market share of the mortgage market. While other banks and building societies felt the effects of the 'credit crunch', HSBC, bolstered by a favourable savings to lending ratio, unveiled a mortgage rate matching deal that would offer non-HSBC mortgage customers the ability to match their current mortgage rate.
In April 2008, HSBC launched a campaign selling mortgages. This was seen as a risky move by media and HSBC staff due to their previous non-plus attitude building on their 3% market share of the mortgage market. While other banks and building societies felt the effects of the 'credit crunch', HSBC, bolstered by a favourable savings to lending ratio, unveiled a mortgage rate matching deal that would offer non-HSBC mortgage customers the ability to match their current mortgage rate.


In 2009, the bank closed its outlets in [[Morrisons]] supermarkets which had traded under the ''Your bank at Morrisons'' brand following the end of an agreement between both businesses. The outlets offered a range of financial services, including an exclusive credit card and [[savings account]].
In 2009, the bank closed its outlets in [[Morrisons]] supermarkets which had traded under the ''Your bank at Morrisons'' brand following the end of an agreement between the two businesses. The outlets offered a range of financial services, including an exclusive credit card and [[savings account]].


In March 2015, the bank announced its intention to move its UK retail banking headquarters from London to Birmingham ([[One Centenary Square]]) in 2018 as part of the programme of [[Ringfencing|ring-fencing]] overseen by the [[Prudential Regulation Authority (United Kingdom)|Prudential Regulation Authority]].<ref>{{cite news|title=HSBC headquarters to relocate from London to Birmingham|url=https://www.bbc.co.uk/news/uk-england-32037169|access-date=24 March 2015|publisher=BBC News|date=24 March 2015}}</ref><ref>{{cite news|last1=Garside|first1=Juliette|title=HSBC to base ringfenced retail banking operation in Birmingham|url=https://www.theguardian.com/business/2015/mar/24/hsbc-to-base-ringfenced-retail-banking-operation-in-birmingham|access-date=13 November 2016|work=The Guardian|date=24 March 2015}}</ref> The programme saw the bank segregate 250 IT systems, change sort code details for approximately 400,000 accounts, and transfer almost 14.5m customers to the new UK arm.<ref>{{cite web|url=https://www.about.hsbc.co.uk/-/media/uk/en/news-and-media/rbwm/180702-hsbc-completes-ring-fencing.pdf|title=HSBC completes ring fencing|date=2 July 2018|website=HSBC|access-date=2019-12-29}}</ref> The bank also announced it would brand the new arm, including all of its branches, as HSBC UK. It had previously been speculated that HSBC might revive the [[Midland Bank]] name or use the [[First Direct|first direct]] brand for its branch network.<ref>{{cite news|last1=Wolfe|first1=Hazel|title=The brand Midland Bank won't return, as HSBC will be called HSBC UK|url=http://www.economicnewsdaily.com/the-brand-midland-bank-wont-return-as-hsbc-will-be-called-hsbc-uk/922042/|archive-url=https://web.archive.org/web/20150915053132/http://www.economicnewsdaily.com/the-brand-midland-bank-wont-return-as-hsbc-will-be-called-hsbc-uk/922042/|url-status=dead|archive-date=15 September 2015|access-date=7 November 2015|work=Economic News Daily|date=4 September 2015}}</ref>
In March 2015, the bank announced its intention to move its UK retail banking headquarters from London to Birmingham ([[One Centenary Square]]) in 2018 as part of the programme of [[Ringfencing|ring-fencing]] overseen by the [[Prudential Regulation Authority (United Kingdom)|Prudential Regulation Authority]].<ref>{{cite news|title=HSBC headquarters to relocate from London to Birmingham|url=https://www.bbc.co.uk/news/uk-england-32037169|access-date=24 March 2015|publisher=BBC News|date=24 March 2015}}</ref><ref>{{cite news|last1=Garside|first1=Juliette|title=HSBC to base ringfenced retail banking operation in Birmingham|url=https://www.theguardian.com/business/2015/mar/24/hsbc-to-base-ringfenced-retail-banking-operation-in-birmingham|access-date=13 November 2016|work=The Guardian|date=24 March 2015}}</ref> The programme saw the bank segregate 250 IT systems, change sort code details for approximately 400,000 accounts, and transfer almost 14.5m customers to the new UK arm.<ref>{{cite web|url=https://www.about.hsbc.co.uk/-/media/uk/en/news-and-media/rbwm/180702-hsbc-completes-ring-fencing.pdf|title=HSBC completes ring fencing|date=2 July 2018|website=HSBC|access-date=29 December 2019}}</ref> The bank also announced it would brand the new arm, including all of its branches, as HSBC UK. It had previously been speculated that HSBC might revive the [[Midland Bank]] name or use the [[First Direct|first direct]] brand for its branch network. The new name was rolled out in 2018.<ref>{{cite news|last1=Wolfe|first1=Hazel|title=The brand Midland Bank won't return, as HSBC will be called HSBC UK|url=http://www.economicnewsdaily.com/the-brand-midland-bank-wont-return-as-hsbc-will-be-called-hsbc-uk/922042/|archive-url=https://web.archive.org/web/20150915053132/http://www.economicnewsdaily.com/the-brand-midland-bank-wont-return-as-hsbc-will-be-called-hsbc-uk/922042/|url-status=dead|archive-date=15 September 2015|access-date=7 November 2015|work=Economic News Daily|date=4 September 2015}}</ref>


As part of setting up the new bank, a new board and legal structure was created. In November 2016, [[Clara Furse]] was named as the first Chairwoman of HSBC UK.<ref>{{cite news|last1=Goodley|first1=Simon|title=Clara Furse to chair HSBC's retail arm|url=https://www.theguardian.com/business/2016/oct/31/clara-furse-to-chair-hsbcs-retail-arm|access-date=13 November 2016|work=The Guardian|date=1 November 2016}}</ref>
As part of setting up the new bank, a new board and legal structure was created. In November 2016, [[Clara Furse]] was named as the first Chairwoman of HSBC UK Bank plc.<ref>{{cite news|last1=Goodley|first1=Simon|title=Clara Furse to chair HSBC's retail arm|url=https://www.theguardian.com/business/2016/oct/31/clara-furse-to-chair-hsbcs-retail-arm|access-date=13 November 2016|work=The Guardian|date=1 November 2016}}</ref>


==Other UK operations==
==Other UK operations==
[[File:HSBC Bank Building, Newbury - geograph.org.uk - 7390.jpg|thumb|right|A branch of HSBC in [[Newbury, Berkshire|Newbury]]]]
[[File:HSBC Bank Building, Newbury - geograph.org.uk - 7390.jpg|thumb|right|A branch of HSBC in [[Newbury, Berkshire|Newbury]]]]


===first direct===
===First Direct===
In 1989, the Midland Bank launched [[First Direct]], the pioneer of [[telephone banking]], with a person-to-person service available 24 hours a day, 365 days a year. It continues to operate as a [[Division (business)|division]] of HSBC UK. It now offers [[internet banking]] as well and serves more than one million customers. By 2004, First Direct had established a position as the United Kingdom's most recommended bank.<ref>First Response Survey. December 2004. Research undertaken agency among 1,577 current account holders across the UK, between 30 November 2004 and 8 December 2004</ref> As of 2020, results of surveys commissioned by the [[Competition and Markets Authority]] showed it continued to be the most recommended UK bank.<ref>{{Cite web|title=Personal banking service quality – Great Britain|url=https://www.ipsos.com/ipsos-mori/en-uk/personal-banking-service-quality-great-britain-february-2020|access-date=2020-06-21|website=Ipsos MORI|language=en-uk}}</ref><ref>{{Cite news|title=Where to go if you want to switch from HSBC|newspaper=[[The Times]]|language=en|url=https://www.thetimes.co.uk/article/where-to-go-if-you-want-to-switch-from-hsbc-322m962nc|access-date=2020-06-21|issn=0140-0460}}</ref>
In 1989, Midland Bank launched [[First Direct]], the pioneer of [[telephone banking]], with a person-to-person service available 24 hours a day, 365 days a year. It continues to operate as a [[Division (business)|division]] of HSBC UK. It now offers [[internet banking]] as well and serves more than one million customers. By 2004, First Direct had established a position as the United Kingdom's most recommended bank.<ref>First Response Survey. December 2004. Research undertaken agency among 1,577 current account holders across the UK, between 30 November 2004 and 8 December 2004</ref> As of 2020, results of surveys commissioned by the [[Competition and Markets Authority]] showed it continued to be the most recommended UK bank.<ref>{{Cite web|title=Personal banking service quality – Great Britain|url=https://www.ipsos.com/ipsos-mori/en-uk/personal-banking-service-quality-great-britain-february-2020|access-date=21 June 2020|website=Ipsos MORI|language=en-uk}}</ref><ref>{{Cite news|title=Where to go if you want to switch from HSBC|newspaper=[[The Times]]|language=en|url=https://www.thetimes.co.uk/article/where-to-go-if-you-want-to-switch-from-hsbc-322m962nc|access-date=21 June 2020|issn=0140-0460}}</ref>


===HFC Bank===
===HFC Bank===
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===Other brands===
===Other brands===
As a result of the Household acquisition, the UK group gained expertise allowing it to enter joint ventures and contracts with more high street names, such as taking over [[Marks and Spencer]]'s financial division, now [[M&S Bank]], on a partnership basis in 2004 and the [[John Lewis Partnership]] Card contract.
As a result of the Household acquisition, the UK group gained expertise allowing it to enter joint ventures and contracts with more high street names, such as taking over [[Marks and Spencer]]'s financial division, now [[M&S Bank]], on a partnership basis in 2004 and the [[John Lewis Partnership]] Card contract.

Along with Barclays Bank, HSBC UK Bank plc owns 50% of Vaultex UK Limited, a bulk cash processing company and member of the Bank of England's Note Circulation Scheme,<ref>Bank of England: Note Circulation Scheme https://www.bankofengland.co.uk/banknotes/note-circulation-scheme#:~:text=Scheme%20(NCS)%3F-,The%20Note%20Circulation%20Scheme%20(NCS)%20governs%20the%20distribution%2C%20processing,underpin%20how%20the%20NCS%20operates.</ref> which handles all bulk cash processing for both banks. <ref>Global Database https://uk.globaldatabase.com/company/vaultex-uk-limited#div_shareholders</ref>

On March 13, 2023, after a bidding process, it was announced that HSBC UK had agreed to acquire [[Silicon Valley Bank]] UK for £1 in a rescue deal, at no cost to the taxpayer and with depositors fully protected.


==Controversy==
==Controversy==
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===Links to arms dealership===
===Links to arms dealership===
In December 2008, the British anti-poverty charity [[War on Want]] released a report documenting the extent to which HSBC and other UK commercial banks invest in, provide banking services for and make loans to arms companies. The charity writes in its report that HSBC holds shares in the global [[arms industry]] totalling £450.6&nbsp;million, and serves as principal banker for [[Meggitt]], one of the UK's largest arms companies. The report also details HSBC's dealings with known producers of [[cluster munitions]] and [[Depleted uranium#Military applications|depleted uranium munitions]].<ref>{{cite web |url=http://www.waronwant.org/resources/banking-bloodshed |title=Banking on Bloodshed |publisher=waronwant.org }}</ref>
In December 2008, the British anti-poverty charity [[War on Want]] released a report documenting the extent to which HSBC and other UK commercial banks invest in, provide banking services for and make loans to arms companies. The charity writes in its report that HSBC holds shares in the global [[arms industry]] totalling £450.6&nbsp;million, and serves as principal banker for [[Meggitt]], one of the UK's largest arms companies. The report also details HSBC's dealings with known producers of [[cluster munitions]] and [[Depleted uranium#Military applications|depleted uranium munitions]].<ref>{{cite web |url=http://www.waronwant.org/resources/banking-bloodshed |title=Banking on Bloodshed |date=October 2008 |publisher=waronwant.org }}</ref>

===Money laundering for drug cartels===
In 2012, the U.S. government uncovered a "blatant failure to implement proper anti-money laundering controls facilitating the laundering of at least $881 million in drug proceeds through the U.S. financial system".<ref>{{cite press release| title=HSBC Holdings Plc. and HSBC Bank USA N.A. Admit to Anti-Money Laundering and Sanctions Violations, Forfeit $1.256 Billion in Deferred Prosecution Agreement| date=December 11, 2012| url=https://www.justice.gov/opa/pr/hsbc-holdings-plc-and-hsbc-bank-usa-na-admit-anti-money-laundering-and-sanctions-violations| publisher=U.S. Department of Justice}}</ref> The bank also violated US [[Sanctions (law)|sanctions]] by conducting business in countries on US blacklists, including Iran, Libya, and Cuba.<ref name=":0">{{Cite news|url=https://www.bbc.com/news/business-36768140|title='Market risk' stopped US action on HSBC|date=2016-07-12|access-date=2019-12-29|language=en-GB}}</ref>

The bank paid a $1.9 billion fine and entered into a 5-year [[Deferred prosecution|Deferred Prosecution Agreement]] with the US Department of Justice. A US Congressional report revealed that the UK government had intervened in the investigation to warn against prosecution, advising that it would have "very serious implications for financial and economic stability", and that the US Attorney General decided not to prosecute the bank as a result of its "systemic importance" to the global financial system.<ref name=":0" />


===Closure of Islamic accounts===
===Closure of Islamic accounts===
In 2014, HSBC closed [[North London Central Mosque]]'s account and some [[Muslim]] clients' and groups' accounts.<ref>{{cite news|url=https://www.bbc.co.uk/news/business-28553921|title=HSBC closes some Muslim groups' accounts|date=30 July 2014|publisher=BBC News}}</ref><ref>{{cite web|url=https://www.theguardian.com/world/2014/jul/30/hsbc-shuts-accounts-muslim-organisations-finsbury-park-mosque|title=HSBC shuts accounts of Muslim organisations, including Finsbury Park mosque|author=Haroon Siddique|work=The Guardian|date=30 July 2014}}</ref><ref>{{cite news|url=https://www.bbc.co.uk/news/business-28562537|title=HSBC closes three Muslim organisations' accounts|publisher=BBC News}}</ref><ref>{{cite web|url=https://www.standard.co.uk/news/london/hsbc-angers-muslim-leaders-by-closing-account-of-controversial-finsbury-park-mosque-9637741.html|title=HSBC angers Muslim leaders by closing account of Finsbury Park Mosque|work=London Evening Standard|date=31 July 2014}}</ref><ref>{{cite news|url=https://www.independent.co.uk/news/business/news/hsbc-closes-bank-accounts-belonging-to-muslim-clients-in-the-uk-9636939.html|title=HSBC closes bank accounts belonging to Muslim clients in the UK|last=Tadeo|first=Maria|date=30 July 2014|work=The Independent|location=London}}</ref><ref>{{cite news|url=https://www.telegraph.co.uk/news/uknews/terrorism-in-the-uk/11000794/Muslim-bank-accounts-closed-by-HSBC-in-wake-of-money-laundering-fine.html|title=Muslim bank accounts closed by HSBC in wake of 'money laundering' fine|last=Barrett|first=David|date=30 July 2014|work=The Daily Telegraph|location=London}}</ref> Several sources reported that HSBC closed them because they donated their money to [[State of Palestine|Palestine]] during the recent conflict.<ref>{{cite web|url=https://www.theguardian.com/commentisfree/2014/jul/30/hsbc-bank-no-muslim-accounts-finsbury-park-mosque|title=HSBC: the bank that likes to say no to Muslim accounts|author=Giles Fraser|work=The Guardian|date=30 July 2014}}</ref><ref>{{cite web|url=http://www.globalmbwatch.com/2014/07/29/uk-muslim-brotherhood-leader-hsbc-closes-bank-accounts-claims-closures-part-action-palestinian-activists/|title=UK Muslim Brotherhood Leader Says HSBC Closes His Bank Accounts; Claims Closures Part of Action Against Palestinian Activists|author=gmbwatch|work=The Global Muslim Brotherhood Daily Watch|date=29 July 2014}}</ref> The bank claimed that continuing to provide bank accounts would be outside of their "risk appetite" and said the decisions were "absolutely not based on race or religion" but declined to comment on individual cases.<ref>{{Cite news|url=https://www.bbc.com/news/business-28553921|title=HSBC closes some Muslims' accounts|last=Laurie|first=Dominic|date=2014-07-30|access-date=2019-12-29|language=en-GB}}</ref>
In 2014, HSBC closed [[North London Central Mosque]]'s account and some [[Muslim]] clients' and groups' accounts.<ref>{{cite news|url=https://www.bbc.co.uk/news/business-28553921|title=HSBC closes some Muslim groups' accounts|date=30 July 2014|publisher=BBC News}}</ref><ref>{{cite web|url=https://www.theguardian.com/world/2014/jul/30/hsbc-shuts-accounts-muslim-organisations-finsbury-park-mosque|title=HSBC shuts accounts of Muslim organisations, including Finsbury Park mosque|author=Haroon Siddique|work=The Guardian|date=30 July 2014}}</ref><ref>{{cite news|url=https://www.bbc.co.uk/news/business-28562537|title=HSBC closes three Muslim organisations' accounts|publisher=BBC News}}</ref><ref>{{cite web|url=https://www.standard.co.uk/news/london/hsbc-angers-muslim-leaders-by-closing-account-of-controversial-finsbury-park-mosque-9637741.html|title=HSBC angers Muslim leaders by closing account of Finsbury Park Mosque|work=London Evening Standard|date=31 July 2014}}</ref><ref>{{cite news|url=https://www.independent.co.uk/news/business/news/hsbc-closes-bank-accounts-belonging-to-muslim-clients-in-the-uk-9636939.html|title=HSBC closes bank accounts belonging to Muslim clients in the UK|last=Tadeo|first=Maria|date=30 July 2014|work=The Independent|location=London}}</ref><ref>{{cite news|url=https://www.telegraph.co.uk/news/uknews/terrorism-in-the-uk/11000794/Muslim-bank-accounts-closed-by-HSBC-in-wake-of-money-laundering-fine.html|title=Muslim bank accounts closed by HSBC in wake of 'money laundering' fine|last=Barrett|first=David|date=30 July 2014|work=The Daily Telegraph|location=London}}</ref> Several sources reported that HSBC closed them because they donated their money to [[State of Palestine|Palestine]] during the recent conflict.<ref>{{cite web|url=https://www.theguardian.com/commentisfree/2014/jul/30/hsbc-bank-no-muslim-accounts-finsbury-park-mosque|title=HSBC: the bank that likes to say no to Muslim accounts|author=Giles Fraser|work=The Guardian|date=30 July 2014}}</ref><ref>{{cite web|url=http://www.globalmbwatch.com/2014/07/29/uk-muslim-brotherhood-leader-hsbc-closes-bank-accounts-claims-closures-part-action-palestinian-activists/|title=UK Muslim Brotherhood Leader Says HSBC Closes His Bank Accounts; Claims Closures Part of Action Against Palestinian Activists|author=gmbwatch|work=The Global Muslim Brotherhood Daily Watch|date=29 July 2014}}</ref> The bank claimed that continuing to provide bank accounts would be outside of their "risk appetite" and said the decisions were "absolutely not based on race or religion" but declined to comment on individual cases.<ref>{{Cite news|url=https://www.bbc.com/news/business-28553921|title=HSBC closes some Muslims' accounts|last=Laurie|first=Dominic|date=30 July 2014|access-date=29 December 2019|language=en-GB}}</ref>

===Mass Job Cuts===
In February 2020, HSBC announced their plan to lay off more than 35,000 jobs worldwide as their profits for 2019 fell 33%.<ref>[https://www.bbc.com/news/business-51499776 HSBC signals mass job cuts as profits plunge]</ref> The company’s interim chief executive, Noel Quinn, announced that the company was planning to scale back its headcount from 235,000 to around 200,000 by 2023. This 35,000 job losses represented about 15% of the company’s workforce.


=== UK Money laundering fine ===
=== UK money laundering fine ===
In December 2021, the [[Financial Conduct Authority]] fined HSBC Bank plc £63.9m for "unacceptable failings" relating to its UK anti-money laundering operations.<ref>{{Cite news|date=2021-12-17|title=HSBC fined £64m for anti-money laundering failings|language=en-GB|work=BBC News|url=https://www.bbc.com/news/business-59689581|access-date=2021-12-17}}</ref> The FCA said that HSBC's transactional monitoring systems "showed serious weaknesses over a period of eight years from 31 March 2010 to 31 March 2018."<ref>{{Cite web|date=2021-12-16|title=FCA fines HSBC Bank plc £63.9 million for deficient transaction monitoring controls|url=https://www.fca.org.uk/news/press-releases/fca-fines-hsbc-bank-plc-deficient-transaction-monitoring-controls|access-date=2021-12-17|website=FCA|language=en}}</ref> HSBC did not dispute the findings, resulting in the fine being reduced from £91m.
In December 2021, the [[Financial Conduct Authority]] fined HSBC Bank plc £63.9m for "unacceptable failings" relating to its UK anti-money laundering operations.<ref>{{Cite news|date=17 December 2021|title=HSBC fined £64m for anti-money laundering failings|language=en-GB|work=BBC News|url=https://www.bbc.com/news/business-59689581|access-date=17 December 2021}}</ref> The FCA said that HSBC's transactional monitoring systems "showed serious weaknesses over a period of eight years from 31 March 2010 to 31 March 2018."<ref>{{Cite web|date=16 December 2021|title=FCA fines HSBC Bank plc £63.9 million for deficient transaction monitoring controls|url=https://www.fca.org.uk/news/press-releases/fca-fines-hsbc-bank-plc-deficient-transaction-monitoring-controls|access-date=17 December 2021|website=FCA|language=en}}</ref> HSBC did not dispute the findings, resulting in the fine being reduced from £91m.


==See also==
==See also==
{{Portal|Banks|Companies}}
{{Portal|Banks|Companies}}
*[[HSBC Bank International]]
* [[HSBC Expat]]
*[[Midland Bank plc]]
* [[Midland Bank]]


==References==
==References==
Line 105: Line 103:
*[http://www.hsbc.co.uk/ HSBC Bank UK]
*[http://www.hsbc.co.uk/ HSBC Bank UK]
*[http://www.hsbcprivatebank.com HSBC Private Bank]
*[http://www.hsbcprivatebank.com HSBC Private Bank]
*[http://www.offshore.hsbc.com/ HSBC Bank International]
*[http://www.offshore.hsbc.com/ HSBC Bank International] {{Webarchive|url=https://web.archive.org/web/20080821110917/http://www.offshore.hsbc.com/ |date=21 August 2008 }}


{{HSBC Group}}
{{HSBC Group}}

Latest revision as of 02:42, 26 May 2024

HSBC UK Bank plc
Formerly
  • HSBC UK RFB Limited (2015–2017)
  • HSBC UK RFB Plc (8–21 August 2017)[1]
Company typeSubsidiary
IndustryFinance and insurance
PredecessorMidland Bank
Founded
  • 22 August 1836; 188 years ago (1836-08-22) in Birmingham, Great Britain (as the Birmingham and Midland Bank)
  • 1 January 2018; 6 years ago (2018-01-01) (rebranded as HSBC UK)
Headquarters1 Centenary Square, Birmingham, England, UK
Key people
  • Dame Clara Furse (Chairman)
  • Ian Stuart (Chief Executive)
ProductsFinancial services
Number of employees
85,000 (including its subsidiaries)
ParentHSBC Holdings
Websitehsbc.co.uk

HSBC UK Bank plc is a British multinational banking and financial services organisation based in Birmingham, England. It is a wholly owned subsidiary of the global HSBC banking and financial group, which has been headquartered in London since 1993. The UK headquarters of HSBC is located at One Centenary Square in Birmingham.

HSBC UK Bank plc is one of the four major clearing banks in the United Kingdom. The business ranges from the traditional high street roles of personal finance and commercial banking, to private banking, consumer finance as well as corporate and investment banking. Across all brands the bank operates some 1800 sites in the UK.

HSBC UK Bank plc is the only one of Britain's big five banks to hold more deposits than loans (loan:deposit ratio of 90%).[2] This has led to the bank being seen as a less risky proposition than the other banks by investors and customers, as it is able to fully fund its own operations. This also contributed to the company's share price maintaining value throughout the credit crunch, unlike other banks in the market.

Acquisition of Midland Bank

[edit]

The Hongkong and Shanghai Banking Corporation acquired a 14.9 per cent equity interest in Midland Bank plc in 1987, and a strong working relationship developed. In 1992, HSBC Holdings plc acquired full ownership of Midland Bank. It was one of the largest acquisitions in banking history, giving HSBC the major foothold in Europe that it needed to complement its existing business in Asia and the Americas. Midland Bank was renamed HSBC Bank plc in 1999 as part of the adoption of the HSBC brand throughout the Group.

UK banking

[edit]

The bank maintains a network of 327 branches throughout England and Wales,[3] with a much smaller presence in Scotland and Northern Ireland where local banks tend to dominate. In recent years, branches have undergone a programme of rolling refurbishment, with a focus on open-plan areas, increased self-service 'Express Banking' machines, ATMs, and an improved layout.[4] Branches also feature HSBC Live, a radio station specifically produced for the bank by media company Immedia in Newbury, Berkshire.[5]

In mid-2003, HSBC became the first UK high-street lender to offer homebuying products in compliance with Sharia (Islamic) law, which prohibits the charging or payment of interest. The range now includes a bank account, home insurance policy (takaful), and home finance.

In April 2008, HSBC launched a campaign selling mortgages. This was seen as a risky move by media and HSBC staff due to their previous non-plus attitude building on their 3% market share of the mortgage market. While other banks and building societies felt the effects of the 'credit crunch', HSBC, bolstered by a favourable savings to lending ratio, unveiled a mortgage rate matching deal that would offer non-HSBC mortgage customers the ability to match their current mortgage rate.

In 2009, the bank closed its outlets in Morrisons supermarkets which had traded under the Your bank at Morrisons brand following the end of an agreement between the two businesses. The outlets offered a range of financial services, including an exclusive credit card and savings account.

In March 2015, the bank announced its intention to move its UK retail banking headquarters from London to Birmingham (One Centenary Square) in 2018 as part of the programme of ring-fencing overseen by the Prudential Regulation Authority.[6][7] The programme saw the bank segregate 250 IT systems, change sort code details for approximately 400,000 accounts, and transfer almost 14.5m customers to the new UK arm.[8] The bank also announced it would brand the new arm, including all of its branches, as HSBC UK. It had previously been speculated that HSBC might revive the Midland Bank name or use the first direct brand for its branch network. The new name was rolled out in 2018.[9]

As part of setting up the new bank, a new board and legal structure was created. In November 2016, Clara Furse was named as the first Chairwoman of HSBC UK Bank plc.[10]

Other UK operations

[edit]
A branch of HSBC in Newbury

First Direct

[edit]

In 1989, Midland Bank launched First Direct, the pioneer of telephone banking, with a person-to-person service available 24 hours a day, 365 days a year. It continues to operate as a division of HSBC UK. It now offers internet banking as well and serves more than one million customers. By 2004, First Direct had established a position as the United Kingdom's most recommended bank.[11] As of 2020, results of surveys commissioned by the Competition and Markets Authority showed it continued to be the most recommended UK bank.[12][13]

HFC Bank

[edit]

Household International established HFC Bank as consumer finance business in the UK in 1973, it became one of the largest consumer finance companies in the UK before Household was acquired by HSBC in 2003. HFC Bank provides retail credit to many leading national retailers and is the largest point of sale loan provider in the UK. The business focuses on retail finance through branches and direct channels, and co-branded and loyalty credit cards. Some of the key brands are the recently relaunched Beneficial Finance (with around 160 branches) and marbles. HFC Bank has around 3.5 million customers.

Other brands

[edit]

As a result of the Household acquisition, the UK group gained expertise allowing it to enter joint ventures and contracts with more high street names, such as taking over Marks and Spencer's financial division, now M&S Bank, on a partnership basis in 2004 and the John Lewis Partnership Card contract.

Along with Barclays Bank, HSBC UK Bank plc owns 50% of Vaultex UK Limited, a bulk cash processing company and member of the Bank of England's Note Circulation Scheme,[14] which handles all bulk cash processing for both banks. [15]

On March 13, 2023, after a bidding process, it was announced that HSBC UK had agreed to acquire Silicon Valley Bank UK for £1 in a rescue deal, at no cost to the taxpayer and with depositors fully protected.

Controversy

[edit]

Withdrawal of graduate overdrafts

[edit]

In July 2007, HSBC suddenly withdrew its interest-free overdrafts for graduates. Students graduating that year discovered that they were to face unexpected bills of up to £140 a year.[16] Students mobilised protests using the social networking website Facebook and in August, HSBC reversed their policy,[17] freezing overdraft charges to recent graduates and pledging to repay charges deducted in August while holding talks with the National Union of Students.

Data loss

[edit]

In April 2008, HSBC confirmed the loss of unencrypted data disks containing life insurance policy details for 370,000 customers.[18] In February 2011 HSBC sent a letter dated 11 February to an unknown number of recipients, stating that they were "writing to inform you of the potential compromise of some of your former account information with us." The date and extent of the loss were not given; however, HSBC offered a year's enrolment to ITAC Sentinel and advised vigilance for 12 to 24 months, as well as recommending contacting the three major credit bureaus to place a fraud alert on the credit profile.

Cultural insensitivity

[edit]

In 2008, HSBC were accused of 'cultural insensitivity' in an advertising campaign featuring an overweight white man dressed to look like a Sumo wrestler. The campaign upset members of Britain's Japanese community who claimed the man's skin tone was darkened and makeup was applied to narrow his eyes.[19] HSBC denied making the model appear to be from a specific country or region but admitted makeup was applied and skin tone was tanned.[20]

[edit]

In December 2008, the British anti-poverty charity War on Want released a report documenting the extent to which HSBC and other UK commercial banks invest in, provide banking services for and make loans to arms companies. The charity writes in its report that HSBC holds shares in the global arms industry totalling £450.6 million, and serves as principal banker for Meggitt, one of the UK's largest arms companies. The report also details HSBC's dealings with known producers of cluster munitions and depleted uranium munitions.[21]

Closure of Islamic accounts

[edit]

In 2014, HSBC closed North London Central Mosque's account and some Muslim clients' and groups' accounts.[22][23][24][25][26][27] Several sources reported that HSBC closed them because they donated their money to Palestine during the recent conflict.[28][29] The bank claimed that continuing to provide bank accounts would be outside of their "risk appetite" and said the decisions were "absolutely not based on race or religion" but declined to comment on individual cases.[30]

UK money laundering fine

[edit]

In December 2021, the Financial Conduct Authority fined HSBC Bank plc £63.9m for "unacceptable failings" relating to its UK anti-money laundering operations.[31] The FCA said that HSBC's transactional monitoring systems "showed serious weaknesses over a period of eight years from 31 March 2010 to 31 March 2018."[32] HSBC did not dispute the findings, resulting in the fine being reduced from £91m.

See also

[edit]

References

[edit]
  1. ^ "HSBC UK BANK PLC overview - Find and update company information - GOV.UK". Companies House. 23 December 2015. Retrieved 22 January 2024.
  2. ^ "Running to HSBC Makes Shares European Bank Winner". Bloomberg L.P. 6 October 2008.
  3. ^ HSBC UK announces branch network plans for 2023 https://www.about.hsbc.co.uk/news-and-media/hsbc-uk-announces-branch-network-plans-for-2023#:~:text=Following%20the%20closures%2C%20HSBC%20UK,areas%20where%20branches%20are%20closing.
  4. ^ "Fit Out You Can Bank on For HSBC". Overbury. Retrieved 29 December 2019.
  5. ^ "Want to know who's to blame for all those shop radio stations? Try". The Independent. 6 January 2012. Retrieved 29 December 2019.
  6. ^ "HSBC headquarters to relocate from London to Birmingham". BBC News. 24 March 2015. Retrieved 24 March 2015.
  7. ^ Garside, Juliette (24 March 2015). "HSBC to base ringfenced retail banking operation in Birmingham". The Guardian. Retrieved 13 November 2016.
  8. ^ "HSBC completes ring fencing" (PDF). HSBC. 2 July 2018. Retrieved 29 December 2019.
  9. ^ Wolfe, Hazel (4 September 2015). "The brand Midland Bank won't return, as HSBC will be called HSBC UK". Economic News Daily. Archived from the original on 15 September 2015. Retrieved 7 November 2015.
  10. ^ Goodley, Simon (1 November 2016). "Clara Furse to chair HSBC's retail arm". The Guardian. Retrieved 13 November 2016.
  11. ^ First Response Survey. December 2004. Research undertaken agency among 1,577 current account holders across the UK, between 30 November 2004 and 8 December 2004
  12. ^ "Personal banking service quality – Great Britain". Ipsos MORI. Retrieved 21 June 2020.
  13. ^ "Where to go if you want to switch from HSBC". The Times. ISSN 0140-0460. Retrieved 21 June 2020.
  14. ^ Bank of England: Note Circulation Scheme https://www.bankofengland.co.uk/banknotes/note-circulation-scheme#:~:text=Scheme%20(NCS)%3F-,The%20Note%20Circulation%20Scheme%20(NCS)%20governs%20the%20distribution%2C%20processing,underpin%20how%20the%20NCS%20operates.
  15. ^ Global Database https://uk.globaldatabase.com/company/vaultex-uk-limited#div_shareholders
  16. ^ Collinson, Patrick; Levene, Tony (25 August 2007). "Now it's Facebook vs HSBC". The Guardian. London.
  17. ^ MacLeod, Donald (30 August 2007). "Students celebrate Facebook triumph over HSBC". The Guardian. London.
  18. ^ Bowers, Simon (8 April 2008). "HSBC loses disk with policy details of 370,000 customers". The Guardian. London.
  19. ^ Day, Elizabeth (24 August 2008). "Bank loses face over Brian the sumo fake". The Guardian. London.
  20. ^ Salter, Jessica (24 August 2008). "HSBC embroiled in 'slit-eye row' over advert". The Daily Telegraph. London.
  21. ^ "Banking on Bloodshed". waronwant.org. October 2008.
  22. ^ "HSBC closes some Muslim groups' accounts". BBC News. 30 July 2014.
  23. ^ Haroon Siddique (30 July 2014). "HSBC shuts accounts of Muslim organisations, including Finsbury Park mosque". The Guardian.
  24. ^ "HSBC closes three Muslim organisations' accounts". BBC News.
  25. ^ "HSBC angers Muslim leaders by closing account of Finsbury Park Mosque". London Evening Standard. 31 July 2014.
  26. ^ Tadeo, Maria (30 July 2014). "HSBC closes bank accounts belonging to Muslim clients in the UK". The Independent. London.
  27. ^ Barrett, David (30 July 2014). "Muslim bank accounts closed by HSBC in wake of 'money laundering' fine". The Daily Telegraph. London.
  28. ^ Giles Fraser (30 July 2014). "HSBC: the bank that likes to say no to Muslim accounts". The Guardian.
  29. ^ gmbwatch (29 July 2014). "UK Muslim Brotherhood Leader Says HSBC Closes His Bank Accounts; Claims Closures Part of Action Against Palestinian Activists". The Global Muslim Brotherhood Daily Watch.
  30. ^ Laurie, Dominic (30 July 2014). "HSBC closes some Muslims' accounts". Retrieved 29 December 2019.
  31. ^ "HSBC fined £64m for anti-money laundering failings". BBC News. 17 December 2021. Retrieved 17 December 2021.
  32. ^ "FCA fines HSBC Bank plc £63.9 million for deficient transaction monitoring controls". FCA. 16 December 2021. Retrieved 17 December 2021.
[edit]