HSBC Says Does Not Need Govt Funds  

HSBC sought to quash speculation that it needs government funds to shore up its balance sheet Monday, as fresh measures were announced by the UK to promote lending to British consumers.

Kirsty Wigglesworth

“HSBC has not sought capital support from the UK government and cannot envisage circumstances where such action would be necessary,” the bank said in a statement.

“HSBC has long been one of the world's most strongly capitalized banks and is committed to maintaining this position,” it added.

The UK’s largest bank has seen its earnings disappear over the last year as losses in the housing market and exposure to toxic assets have dented its core business.

The UK government announced a fresh round of measures to aid the financial sector earlier, following $55 billion in aid for the sector in October.

HSBC said it welcomes the moves to support lending in the UK and will “continue to work constructively with the authorities to ensure that these initiatives are taken forward in a way that is beneficial for the economy.”

Shares of HSBC have slumped over 14 percent since the start of last week on speculation that the bank may need to raise capital.