Preview

Case Study: Hongkong & Shangai Banking Corporation

Powerful Essays
Open Document
Open Document
1840 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Case Study: Hongkong & Shangai Banking Corporation
Hong Kong & Shanghai Banking Corporation (HSBC)

1. The HSBC Group
- The HSBC Group is named after its founding member, The Hong Kong and Shanghai Banking Corporation Limited, which was established in 1865 to finance the growing trade between Europe, India and China.
- Is based in Hong Kong, where the bank’s business has been physically conducted, and with a large network of branches in Asia, a very large London branch office, and several US branches, plus a subsidiary bank in California and a representative office in New York.
- HSBC carries its business in Hong Kong dollars, US dollars, European currencies and Japanese yen.
- Some of HSBC activities: receives deposits from local (Chinese) individuals and companies; loaned the money to both local borrowers and international banks in the Eurocurrency market; finances exports and imports with firms in the countries of the British Commonwealth (Great Britain and its former colonies)
- HSBC has been operating in the United States since 1875 when it first opened an agency in San Francisco.
- In the 1960s HSBC acquired the Republic Bank of California (with 11 branches in the state).
- A second agency was opened in New York in 1880 which converted into a branch in the 1970s as a result of a change in NY’s banking laws.
- By the 1970s the bank had firmly developed a policy of expansion by acquisition or formation of subsidiaries with their own identities and expertise.
- Other branches were established in Chicago, Seattle, and Portland and another subsidiary in was set up in Houston.
- During the 1980s HSBC concentrated on moving into those markets where it was not yet fully represented.

1.2. Brief description of the case.

Type of case:

 Foreign Market entry

Situation:

In 1980, the bank’s top management wanted to diversify its assets and activities across the world, placing about one-third of the total in Hong Kong, Europe and the United States.
Michael Sandberg, chairman of HSBC in Hong

You May Also Find These Documents Helpful

  • Powerful Essays

    Despite its British base, it has few customers in the United Kingdom and 90% of its profits come from Asia, Africa, and the Middle East. Because the bank's history is entwined with the development of the British Empire its operations lie predominantly in former British colonies, though over the past two decades it has expanded into countries that have historically had little British influence. It aims to provide a safe regulatory bridge between these developing economies.…

    • 3087 Words
    • 16 Pages
    Powerful Essays
  • Powerful Essays

    Goldberg, L., Saunders. A., 1981, ¡¥The Growth of Organizational Forms of Foreign Banks in the U.S.: Note¡¦, Journal of Money, Credit and Banking. Vol. 13, No. 3. (Aug., 1981), pp. 365-374.…

    • 3528 Words
    • 15 Pages
    Powerful Essays
  • Powerful Essays

    Bank of America can more easily expand and enter into foreign banking markets today the in the past. There are always constantly more…

    • 2218 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    * 1955- Chase Manhattan Bank was formed upon the 1955 purchase of Chase National Bank (est. 1877) by the Bank of the Manhattan Company (est. 1799), the company’s oldest predecessor institution. The Bank of the Manhattan Company was the creation of Aaron Burr, who transformed The Manhattan Company from a water carrier into a bank.” Wikipedia. This was the surprising start to a banking empire.…

    • 1250 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Bank Of America Essay

    • 756 Words
    • 4 Pages

    BoA’s achievements and growth throughout the past was from successful merger and acquisition which start with two separate banking entities, Commercial National Bank and Bank of Italy in 1874. Commercial National Bank grew in value and expanded from repurchased and acquisition…

    • 756 Words
    • 4 Pages
    Good Essays
  • Good Essays

    They came into problems during the global financial crisis because of heavy exposure in the subprime mortgage market. They bought subprime loans from other sources to increase its revenue. Many of these did not require any down payment, but were approved for risky borrowers with a poor credit history. Home values started to go down, interest rates were going up. Unfortunately, borrowers with ARMs could no longer make their mortgage payments. This caused borrowers to become in default of their mortgages. HSBC started to lose its profit.…

    • 409 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    However the markets had been consolidating for sometime with the total number of banks in America having reduced to 7000 from an figure of 14000 first recorded in 1985. Intense competition characterized the market and the challenge for national banks was to be able to localize product and service offerings for their customers.…

    • 1154 Words
    • 5 Pages
    Powerful Essays
  • Best Essays

    Chase Manhattan Case Study

    • 4676 Words
    • 19 Pages

    In 1955 Chase National Bank and the Manhattan Company merged with Chase Manhattan Bank. David Rockefeller, who became Chairman of Chase in 1969, was significantly involved in the merger. By the end of the 1979s Chase evolved to the third largest Bank in the United States (U.S.). In the 80s Chase saw itself confronted with difficulties, which were caused by investments in bad real estate loans. In the year of 1990 Chase suffered from a record loss of $1 billion. The company however managed to regroup and presented a solid balance sheet in the next four years leading to the merger (Gilson and Escalle, 1998).…

    • 4676 Words
    • 19 Pages
    Best Essays
  • Powerful Essays

    National Australia Bank

    • 3862 Words
    • 16 Pages

    Early growth of the company was based in the areas of Victoria and South Australia. Over the years, it gradually expanded while absorbing the following banking institutions in Australia with the year the institutions are taken over in parentheses. The Colonial Bank of Australasia (1918), the Bank of Queensland (1922), the Queensland National Bank (1948) and the Ballarat Banking Company (1955).…

    • 3862 Words
    • 16 Pages
    Powerful Essays
  • Powerful Essays

    Hsbc Money Laundering

    • 3113 Words
    • 13 Pages

    HSBC is one of the largest financial institutions in the world, with assets over $2.5…

    • 3113 Words
    • 13 Pages
    Powerful Essays
  • Better Essays

    HSBC is one of the largest financial institutions in the world, with over $2.5 trillion in assets, 89 million customers, 300,000 employees, and 2011 profits of nearly $22 billion. HSBC has operations in over 80 countries, with hundreds of affiliates spanning the globe. Its parent corporation, HSBC Holdings, called “HSBC Group” is headquartered in London. Its key U.S. affiliate is HSBC Bank USA N.A. (HBUS). HBUS operates more than 470 bank branches throughout the United States, manages assets totaling about $200 billion, and serves around 3.8 million customers. It holds a national bank charter, and its primary regulator is the U.S. Office of the Comptroller of the Currency (OCC), which is part of the U.S. Treasury Department. Even thought HSBC is one of the biggest and most powerful banks in the world, it ran into the number of legal and ethical issues that led to severe legal consequences. HSBC lacked adequate control processes in compliance and anti-money laundering. It was also involved in illegal cash transfers from criminals and terrorists and helped many customers launder money by opening thousand of accounts in Jersey. The deficiencies and negligent controls inside HSBC included an inability to properly monitor $15 billion in cash transactions between 2006 and 2009, poor staffing and high turnover in the bank 's compliance units. These issues were partly caused by its widespread affiliates operated with a degree of independence that left chief bank officials with less authority and control. Each affiliate had its own officer to manage compliance with laws to prevent money laundering. Nigel Morris-Cotterill, head of the Anti Money Laundering Network, a consultancy based in Kuala Lumpur, Malaysia, said international banks face conflicts between laws and regulations in different countries. "There are times when the lines are blurred, when you 're not clear exactly where…

    • 1322 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    In the recent years, HSBC moved from an important regional bank to one of the world’s leading financial services organizations. HSBC's management had conceived the strategy of the 'three legged stool' with the legs of the stool representing the three big markets of the Asia Pacific region, the US and the…

    • 4846 Words
    • 20 Pages
    Powerful Essays
  • Powerful Essays

    Hsbc and Lloyds

    • 2835 Words
    • 12 Pages

    HSBC is the world’s largest banking and financial in serving and sort out business and person needs. It was founded in 1865 in which original office in Hong Kong and Shanghai. HSBC stands for the Hong Kong and Shanghai Banking…

    • 2835 Words
    • 12 Pages
    Powerful Essays
  • Better Essays

    Manging Change at Anz

    • 1753 Words
    • 8 Pages

    Due to mergers and acquisition in Australia, from 1960 to 1980, 12 trading banks dwindled to 9. After deregulations and issuing new licenses, the numbers escalated to 34. Subsequently, new competitors emerged in home mortgage industries and banks, which operated on a low cost framework. Hence, the banks were unfamiliar with the new pressures (Wood, Zeffane, Fromholtz, Wiesner, Creed, Schermerhorn, Hunt, Osborn, 2010).…

    • 1753 Words
    • 8 Pages
    Better Essays
  • Powerful Essays

    Wamu Case Study

    • 757 Words
    • 4 Pages

    The industry leaders were investing money in ATM and online channels to steer customers out of their branches. They deemphasized the retail banking business to chase the potentially higher profit margin businesses like underwriting and wealth management.…

    • 757 Words
    • 4 Pages
    Powerful Essays

Related Topics