However, small and medium sized businesses have been the traditional customer base of HongkongBank since it was established in 1865. HSBC recognises that the right trade and credit information and an international network can help to open up new markets to these companies and make them more competitive.
IMPACT ON EMPLOYMENT
Midland has 57,500 employees worldwide, of which 45,000 are in UK banking and 27,000 in the branch network.
HSBC will safeguard employment and pension rights. has a policy of filling posts by searching all group companies for the best qualified person, which will open up new career opportunities for Midland employees.
HSBC
A Lloyds takeover would result in the loss of 20,000 30,000 jobs in both banks.
A CERTAIN FUTURE
"A merger of Midland and HSBC is strongly in the national interest. A speedy resolution is desirable." (Letter to MPs from Midland's Chairman, 14th May, 1992).
As with all mergers which derive their greatest benefit from redundancies and rationalisation, a Lloyds takeover would lead to damaging uncertainty for the business, customers and employees for many months to come.
Furthermore, should the Lloyds bid go ahead, a Private Bill would be needed in Parliament to allow it to transfer Midland's customers to Lloyds without their permission. Such a bill would be highly contentious and could take well over a year to get through Parliament - if it ever did. Such a delay would be very damaging to Midland's customers and staff and to British banking.
19th May, 1992
HSBC Holdings is the UK incorporated parent company of the Hong Kong and Shanghai Banking Corporation Limited (HongkongBank).
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