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HSBC Bank Shutters Branches as Global Recession Intensifies
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by utilaeastwind | May 17, 2009 at 06:23 pm
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Sunday May 17th 2009 UTILA
HSBC Bank is closing branches in Honduras only two years after taking over Banco Grupo Ahorro Hondureño in 2007.
Once thought to be most powerful bank in the world The Hong Kong and Shanghai Bank is now buckling under the weight of the Global Recession and the small island of Utila, one of The Bay Islands of Honduras is the first to feel the hit.
In a completely unpublicized move, HSBC clients have found that the bank will be closing all services on the island as of the 29th of May 2009 and all accounts must either be closed or moved to La Ceiba.
The Eastwind has contacted the bank for and explanation but bank officials were unable, due to company policy, to disclose details as to how many branches will be closed or why.
Due to the\is lack of explanation, local residents are worried about their deposits and are moving quickly to withdraw funds from the bank for fear of losing savings.
The vast majority of businesses of the island use HSBC and now they will be forced to move to the last remaining bank on the island, Banco Atlantida or sail to the mainland to do their banking. Banco Atlantida, with only two tellers, will suspectivly be overwhelmed by the increased business traffic and cause businesses and private clients to wait hours in line for service.
Updates will be posted as information is available.
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utilaeastwind
East Harbour, The Bay Islands, Honduras
Most RecentMost Recommended Comments (4)
at 04:23 on May 18th, 2009
Keep your money highly mobile. Banks are trying to get people to lock in their accounts in order to get higher interest rates. This is a death sentance for your wealth. It means that when the bank goes down, you can't do anything to rescue your money because you already signed the deal that they can hold your money for a year or more. Ask people in Argentina what this is like and how this can happen. Keep mobile, keep mobile.
at 02:13 on May 18th, 2009
Interesting: HSBC was to be one of the banks that was 'safe'. I suspect it is suffering because of its loses in the US subprime market. People should keep a keen eye on the status of their local HSBC and be prepared to move quickly to get their funds out and safe if it is starting to close up or have what they call a 'bank holiday' (when you can't take your money out for a year or two.
at 20:09 on May 17th, 2009
Thank you for the post. Similar things are happening every where though and with most Banks.
at 05:51 on May 27th, 2009
Are the La Ceiba branches still going to be oprerating as normal? Are HSBC customers at risk in Honduras?