British banking giant HSBC has completed ‘ringfencing’ of UK high street banking unit to comply with the government’s ring-fencing legislations.
Under the Financial Services Act of 2013, all the banks in the UK are required to complete the ring-fencing process by the end of this year in order to safeguard common customers from the impact of a potential economic downturn.
As part of the ring-fencing process, the group transferred around 400,000 bank accounts to new sort codes. The firm has also rebranded all its branches in the UK.
The new retail banking unit, known as HSBC UK, will be led by Ian Stuart as the CEO.
“We are delighted to complete the ringfencing of HSBC UK six months ahead of the legal deadline. The creation of our ringfenced bank and our move to Birmingham is a once in a lifetime opportunity to get closer to our customers, colleagues and communities across the UK,” The Financial Times quoted Stuart as saying.
HSBC UK, including First Direct and M&S Bank units, is said to have 14.5 million retail and business customers with more than £200bn of assets, according to The Financial Times.
Other major British lenders such as Barclays and Royal Bank of Scotland have already completed the ring-fencing process.
However, Lloyds Banking Group is yet to complete ring-fencing process.