HSBC says bank headquarters will remain in UK

The bank had warned it might move abroad over concerns about stricter regulations Credit: PA

HSBC will continue to be headquartered in the UK following a "unanimous" decision by the bank's board.

The announcement follows a lengthy and high-profile review at the bank, which last year warned it might move abroad over concerns about stricter regulations.

The bank said in a statement: "London is one of the world's leading international financial centres and home to a large pool of highly skilled, international talent.

"It remains therefore ideally positioned to be the home base for a global financial institution such as HSBC."

The decision comes after Chancellor George Osborne made a series of concessions to the City in recent months.

A Treasury spokeswoman said:

Mr Gulliver said remaining in the UK brought the bank 'the best of both worlds' Credit: PA

HSBC chief executive Stuart Gulliver said: "Having our headquarters in the UK and our significant business in Asia Pacific delivers the best of both worlds to our stakeholders."

HSBC's review was announced in April last year at the bank's annual meeting.

It cited increasingly onerous British regulatory conditions and the UK bank levy introduced in 2010 - a tax based on the size of any British-based banks' global balance sheet.

But since then, Mr Osborne has vowed to gradually reduce the bank levy over the coming years - a commitment made in last July's Budget - and called for an end to banker bashing.

In the later stages of the review the search for a location for a new HQ had "narrowed" to the UK and Hong Kong, "both of which are considered by the board to be world-class financial centres", the bank said in a statement.