HSBC considers to quit Turkey after operating for roughly 30 years in the country. Sources familiar with the matter said it is regarding to fear of the volatile currency and economic outlook.
The 2018 currency crisis made lira’s value dropped by 30%, causing a sharp recession. As a result, Turkey had to keep its financial sector under control by implementing a series of novel regulations, aiming at stabilizing the currency and boosting economic growth.
Pertaining to the bank’s retreat, it is in line with broader cost-cutting measures under interim Chief Executive Noel Quinn. Additionally, HSBC will sell its banking business in Turkey if local buyers want to buy.
The bank’s decision is actually kind of predictable as indications have shown in the recent years. In 2013, the bank had approximately 315 branches and nearly 6.000 staff. However, it shrank to 80 branches and 2.000 staff last year according to data from the Banks Association of Turkey.
However, HSBC spokesperson refused to issue any comments. Therefore, the decision appears to be not a final one yet.
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Other than Turkey, HSBC Considers to Retreat from Other Countries
Turkey is not the only country that HSBC plans to abandon. Reportedly, the giant bank considers to exit from other countries that are not promising enough for the bank.
HSBC considers to quit countries with small-scale operations such as Armenia, Greece and Oman. Besides the efficiency plan, the bank also experiences a hard time competing against local players.
Pertinent to the decision, the bank will more likely plan to scale back in Europe. Additionally, it is also shedding around 100 roles in its equities business.
Regardless of the rumors, the decision is yet to be a final one. In addition, the bank will probably announce its cost-cutting measures during the annual result report and new strategy publication next month.