HSBC in plans to attain major stake in Iraqi bank |
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Wed, 18 May 2005 14:20
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Leading banking group, HSBC revealed on Tuesday that negotiations were on regarding its buying a majority stake in investment bank, Dar Es Salaam of Iraq. If the deal is successfully completed, HSBC will emerge as a powerful leader in the banking system of Iraq, making it the first bank with such a strong grip over Iraq after the 2003 war.
Dar Es Salaam is a private investment bank, which was set up in 1999 and has 14 of its branches in Iraq itself, with eight branches being in the Iraqi capital, Baghdad. Besides, HSBC, eight other regional and international banks like Standard Chartered Plc (STAN.LN) and National Bank of Kuwait S.A.K. (NBK.KW), have also been granted licences to operate in war-stricken Iraq.
Banking in Iraq has been in the doldrums after the 2003 war, with people living in constant fear of violence and death in the country ever since.
| However, some relief might be round the corner with HSBC disclosing that talks of it acquiring a major stake in the Dar Es Salaam bank were underway. The banking giant, HSBC said that it aspired to provide top class banking services to the people in Iraq by developing a strong personal and commercial banking system in the fear-ridden country.
As per the bank’s sources, HSBC was in a bid to purchase as much as a 75% stake in the Iraqi bank, Dar Es Salaam, and it was anticipated that the deal would be finalized by the end of July. It is also being said that HSBC will not change the Dar Es Salaam brand name in Iraq, but will retain it.
Meanwhile, international bank, Standard Chartered said that it would open branches in Iraq but it was simultaneously keeping in mind “the security situation there.”
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