News Search

Industry News

HSBC retreats from Cayman Islands banking business

Thursday, 10 July, 2014

HSBC has announced the phasing out of its Cayman Islands corporate and retail banking operation, in a strategic withdrawal from the market.

The business's assets are being sold off to its local rival Butterfield, which has undertaken to accommodate HSBC's entire Cayman client base and says it will strive for a seamless transfer of business.

HSBC Cayman has already begun winding down its operations. It has stopped accepting new clients and says it will look to minimise the impact on the remaining customers during the period.

The sale of HSBC's onshore banking business will not affect other HSBC operations and businesses in Cayman.

HSBC Cayman had total gross assets of about USD1.4 billion as at 31 March this year, of which USD800 million were owned by the the corporate and retail banking operation. Completion of the sale to Butterfield will take place by the end of this year, taking its assets to about USD3.1 billion.

Butterfield's Chief Executive Brendan McDonagh said Cayman is an 'important financial jurisdiction and a key domestic market' for the company.

Sources