HSBC has decided to wind down its operations in Brunei, which comprise retail, commercial and global banking services, the bank said in a statement Tuesday.
According to the statement, this move is "not a reflection on the economic environment in Brunei" but instead "part of the group's global review of businesses" and represents a significant step in HSBC's stated goal "to optimize its global network and reduce complexity" outlined during the HSBC Investor Update on June 9, 2015.
Globally, there is a very challenging operating environment for all banks and HSBC's strategy is founded upon supporting trade and investment flows across the world's major trade corridors.
HSBC said that the wind down will commence on April 6, 2016, and HSBC Brunei will no longer take on any new accounts, facilities or business from that date. To minimize the impact or inconvenience to its customers, the process will be phased over time and HSBC Brunei will ensure that all existing obligations to clients are met.
According to HSBC, all operations in Brunei were reviewed as part of this global initiative. Its customers are now encouraged to start looking for another bank to take over their deposits, accounts and facilities.
People familiar with HSBC Brunei told Xinhua that the winding down means the bank will gradually shut down its operations in the sultanate and exit Brunei market in the end, which will make HSBC the second international bank to close its banking business after Citibank in 2014. Enditem