Standard Chartered is said to be making plans to cement its Asian operations into 2 different hubs; one in Hong Kong and one in Singapore. This is due to aiming for better capital management.
The lender which is focused mostly in the Middle East, Africa and Asia, currently manages its operations in Asia out of Singapore and Hong Kong, and so the changes would be mostly to its legal entities in the region.
According to sources, no specific decisions have been finalised.
The plans detail the consolidation as many as 10 Southeast and South Asian countries – perhaps including India and Indonesia – uner a new subsidiary in Singapore as soon as next year.
It is expected to permit the bank to better manage its capital and assets and could possibly reduce the size of the emergency buffers regulators require the business to maintain. Moreover, StanChart is said to be also bringing together some of its other countries such as South Korea in a different Hong Kong subsidiary.