HSBC, one of the largest banking and financial services organizations in the world, after three years of operation on Georgia’s banking market, has decided to leave the country.

According to Guy Lewis, chief executive officer of HSBC Bank Georgia, HSBC has limited size and scale in Georgia.

“Despite considerable efforts in the country (Georgia), we think that now is the right time to withdraw from the market,” Lewis said on September 6.

The decision, as he explained, is the result of changing the bank’s global strategy. In the spring of 2011, the bank decided to close its business operations in Poland and Russia.

Headquartered in London, HSBC’s international network comprises around 7,500 offices in 87 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa.

With listings on the London, Hong Kong, New York, Paris and Bermuda stock exchanges, shares in HSBC Holdings plc are held by over 221,000 shareholders in 127 countries and territories. The shares are traded on the New York Stock Exchange in the form of American Depositary Receipts.

HSBC provides a comprehensive range of financial services to around 95 million customers through four customer groups and global businesses: Personal Financial Services (including consumer finance); Commercial Banking; Global Banking and Markets; and Global Private Banking.

In Georgia, HSBC’s main priorities were working with only corporate clients. Accordingly, Lewis said in his statement that the bank has stopped accepting new clients and continues to provide the full range of services to their old clients until all obligations in the contracts will be fulfilled.

The bank started its business activities in Tbilisi in the summer of 2008, offering a full range of corporate, trade and treasury services to local and international businesses.

“HSBC will help its clients to transfer to other banking institutions,” Lewis added. HSBC started the closing procedures and expects that the process will end by the year 2012.

Currently, Georgia’s banking sector is composed of 19 commercial banks, including 13 foreign-controlled banks and two branches of non-resident banks. The top-five players in the banking sector are, Bank of Georgia, TBC Bank, Bank Republic, ProCredit Bank Georgia and VTB Bank Georgia. The combined market share of these banks amounts to over 78%.

Source: www.georgiatoday.ge