One of the world’s largest banks plans to launch a presence in Ukraine in 2008
London based HSBC, one of the world’s largest banks, plans to launch a presence in Ukraine in 2008 to boost corporate and sovereign lending to the local market.
The arrival of HSBC, whose representatives said they will launch a “commercial center” in Ukraine after launching a retail business in Russia, marks the continued advance of leading financial institutions onto Ukraine’s promising bank market.
In an Oct. 4 interview with the Kommersant-Ukraine daily, spokesperson James Piper said HSBC will aim to provide financing for small, medium and large businesses.
“We are putting together a global network, which will help us provide services to Ukrainian companies. They will be able to perform export and import operations with other countries through HSBC,” Piper said.
HSBC’s press service was tight-lipped about concrete plans.
“We have operations in Eastern Europe and Russia. We now have a banking license with Georgia. But we don’t currently have operations in Ukraine. We are seeking opportunities and will continue exploring opportunities in Ukraine,” an HSBC representative told the Post.
An HSBC report issued last month said that the bank is “actively considering opening” in Ukraine, Romania and Hungary. HSBC Holdings operates more than 10,000 offices in 83 countries. It boasted more than $1.86 trillion in assets at the end of last year.
Specializing in business lending, HSBC is not immediately expected to build a universal banking business in Ukraine, but to first launch a representative office for servicing corporate clients. However, given the growing interest of foreign banks on the Ukrainian market, HSBC may expand its presence in Ukraine, sources said.
“Ukraine is a country of growing attractiveness, therefore, universal banks would tend to stick their flags in the country, investment banks would most likely continue their business from their European head offices,” said a representative of a major European bank in Ukraine.
