Why has my bank not been mantion during this current crisis?

y0z2a

I know that this might seem like a rather odd question to ask, but why has my bank - HSBC not been mentioned during this current banking / finance crisis?

Are they in that good a shape? They blooming should be with the amount that they change my partner and I when we go overdrawn by £2 or something stupid.

What is the story here? Are they in great shape?

/y0z

WhySoHard_2

Yes they are in great shape.

kpwll

Thanks for asking and answering that, I was wondering exactly the same thing.

ShelfStacker_3

HSBC are in good shape because they didn't borrow off the money markets (relying on their deposits to lend to customers) and are sufficiently large and diversified that a downturn in one part of the group wouldn't really affect the whole all that much.

AFAIK they had a small role in the subprime mortgage crisis with their ownership of Household Finance, but other than that all's well. Funny you should mention this, this is anecdotal but we've had a HUGE upsurge in interest in our savings products recently, with quite a few Bradford and Bingley cheques coming in through the door.

However:

Are they in that good a shape? They blooming should be with the amount that they change my partner and I when we go overdrawn by £2 or something stupid.

You wouldn't be charged. Fees are waived for overdraft requests under £10, and total fees in any one month are capped at the largest amount you went over. I very much doubt you were charged for "£2 or something".

y0z2a

Thanks for answering that.

I will be posting a bit more about the charges things when I start my re-claim procedures this week from Natwest & HSBC.

Regards,

/y0z

perplexed.com

I assume this also applies to First Direct as they are part of HSBC? I would recommend them for service btw

mrposhman

HSBC are in pretty good shape. Like others have said their diversification helps plus they had a sustainable business model unlike others. They have written off far more than others suggesting their balance sheet probably represents more of what it should rather than the bloated and overvalued balance sheets of the others.

You are in safe hands with hsbc.

Floxxie

They issued an internal memo yesterday to advise that they are not having to borrow any of the funds....at present. Let's hope that continues.

Floxxie

michaels

Easy to tell they are OK - look at how uncompetitive their savings products are - they are obviously not struggling to get their hands on any money they can. Another clue is the share price - compare the 12 month performance with any other UK bank. In fact they are now the biggest/most valuable bank in the world by some measures.

Sadly I have my mortgage with HSBC and my assets with other less relaible banks - why does it always work out that way

ShelfStacker_3

michaels wrote: »

Easy to tell they are OK - look at how uncompetitive their savings products are

6.25% e-ISA is top of the table (or at the least close to it, was last I checked), then there's the 8% Regular Saver for current account holders, 10% if you have Plus or Premier... hardly uncompetitive. Remember not topping the table 100% of the time isn't "uncompetitive"...

halight

HSBC are a very big bank and thay are in good shape.