Is it a big HSBC, to stay in the UK?

The global balance of loans granted by HSBC's almost as big as the UK economy

The Board of HSBC Holdings PLC before dec whether to quit London, faces a key question: Is it too big bank to stay?

Board HSBC's throw down the gauntlet to the United Kingdom this spring, saying he will decide whether to move the headquarters of the Bank of London by the end of December. Hong Kong, Shanghai, Paris and cities in the US are potential alternatives, according to people familiar with the discussions in the Governing Council.

The balance of bank assets e- $ 2.57 trillion, almost as big as the UK economy. This could mean massive pressure from regulators on the British lender to hold more capital, said Chirantan Barua of Bernstein Research.

HSBC moved its headquarters from Hong Kong to London in 1993 and regularly review that decision. The current assessment comes amid tighter regulation. BoA pressed with the rules and forcing lenders to separate retail and investment banking, adding to the headaches, which include restrictions on bonuses.

At HSBC employs about 46,000 people in the UK and transfer of the seat and can lead to the displacement of only 250 jobs and will take about two years, said Chief Executive Stuart Gulliver investors at a conference earlier this year. The Bank expects to make a final decision until December, although it may slip into next year.

Rebates and change in tone from the government could encourage the bank to take the easiest path and give up their intentions, analysts say.

E.Dimitrov JrTrader