Tuesday, July 30 2024 20:09

ArmInfo. The banking system in the world is becoming more local.  That's how the Governor of the Central Bank of Armenia, Martin Galstyan, explained HSBC's exit from a number of countries, including Armenia, during a press conference on July 30.  "Global players, who after the collapse of the USSR considered this territory a large field for expansion, in my opinion, no longer think so. Everyone is returning to local jurisdictions," he said. As an example, Galstyan named such large players as HSBC and City Bank.  According to the head of the Central Bank, this is due to the fact that there are many risks in the Region, not only geopolitical, but also sanctions. Working in this Region has become extremely costly in terms of compliance and adherence to the rules of the game.

To recall: HSBC opened its branch in Armenia in 1996, initially called Midland Bank, but later renamed HSBC Bank Armenia. Nowadays, on February 6, 2024, Ardshinbank announced that it has reached a binding agreement with HSBC Europe B.V (a subsidiary of HSBC Holdings plc) to acquire its subsidiary banking company in Armenia (HSBC Bank). Armenia is the last country in the CIS where this Bank's representative office is closing down. The group has exited 7 countries, including retail lending in France, the USA, Greece, etc.