Due to global financial crisis, mostly banks have submerged to economic meltdown that rocks the world. This is considered the worst global crisis that could be experienced in this generation where the strongest and most stable institutions around the world are greatly affected; the worst is that, no one could predict how long the crisis will last.
Started in mortgage business in the United States, financial meltdown gradually affected many countries after putting investment in the business. Today, the impact is severe though varies from country to country. As most businesses around the world received the negative impacts this may severe the cases of poverty among Asian countries. The question whether banks have roles to play to respond positively at least to restore financial stability of every country poses a great challenge because the worst is yet to come if adequate action will not conceptualize at this early.
In response to the crisis, HBCS has conceptualized some strategies that could lessen the aftermath of global crisis in Asia. HSBC Group Chairman Stephen Green stated that “a fundamental trend that has emerged in the world economy is the rebalancing of the global economy toward Asia” (Eideard). Green made such comment as he viewed Asia as having potential to meet continued development challenges considering the fast growing economy of China and India.
Amidst many challenges, HSBC maintained its status quo employing “profitable business model” through which it gained considerable profit in the last year’s financial report such as 10% in lending and US$19.9 billion in its pre-tax profit. The model is of three categories: the pre-tax for 2008, diversified business model, and earnings per ordinary share (HSBC Holdings). The global financial crisis that imbalances the global economic development is addressed according to Green by continuing “to build our business focusing on faster-growing markets around the world” (HSBC Holding).
HSBC along the stated model, it also implement its OneHSBC program that seeks to further improve “customer experience and cost efficiency.” Likewise, it places its businesses in strategic areas to enhance the business transaction.
Eideard (24 March 2009). HSBC Chairman says the global economy is rebalancing towards Asia. http://eideard.wordpress.com/2009/03/24/hsbc-chairman-says-the-global-economy-is-rebalancing-towards-asia/
HSBC Holdings 2008 Final Results – Highlights. The Asian Banker. https://www.theasianbanker.com/A556C5/Update.nsf/0/2F7BB6391F2AD3ED4825756E000CE540?Opendocument