HSBC Welcomes UK Government Plan, No Plans To Use Recapitalisation
Wednesday October 8th, 2008 / 9h52
Edited Press Release LONDON -(Dow Jones)- HSBC Holdings said Wednesday that it welcomes the U.K. government's proposals to provide liquidity and inject capital into the U.K. banking system. These are important and necessary steps in restoring confidence to the sector, it said. Consistent with the objectives of the U.K. scheme announced Wednesday, HSBC will ensure that its principal U.K. subsidiary, HSBC Bank, continues to be appropriately capitalised, funded from the Group's internal resources. HSBC therefore has no current plans to utilise the U.K. recapitalisation initiative, it said. The HSBC Group supports efforts to stabilise the operation of financial markets and yesterday provided significant amounts of liquidity to the London Sterling interbank market, lending around GBP2billion of three-month and six-month money to other banks. The company said it expects to be very active in the London interbank market again Wednesday. HSBC believes its actions will contribute to easing the strain in U.K. money markets, where the availability of three-month and six-month interbank loans has been very tight in recent weeks. The company had a tier one capital ratio of 8.8% and a loan to deposit ratio of 90% as at June 30. Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/al?rnd=77znUA3kjavnLZNSIfQT9w%3D%3D. You can use this link on the day this article is published and the following day.
