HSBC has reportedly now moved in favour of remaining in the UK following a serious of changes to planned reforms within the banking industry.
The bank, which had threatened to move its headquarters out of Britain, is said to have been placated by Chancellor George Osborne’s decision to reduce the bank levy and water down plans to force banks to ring-fence their retail and investment businesses.
Stuart Gulliver, the bank’s chief executive, has managed to get “pretty much everything he wanted out of the government”, a high-level source told the Sunday Times.
While the lender says it has not yet made its decision, a top 10 shareholder told the publication it is now “more than likely that the bank will remain in the UK when the domicile review is completed”.
HSBC is now planning to postpone the final decision of its domicile review until the New Year, having previously said the announcement will come in December.