Tooterelli

I still have an account with HSBC from when I lived/worked in Dubai. Having nearly been badly burned by Landsbanki I wouldn't want this to happen again!
What is the word on the street re safety of the banks in Dubai?
Thanks a lot

The Dean

Bear in mind - and not many people are aware of this - that HSBC Middle East is actually a Channel Islands registered company (the registered address is on the bottom of their letterhead note paper).

Doesn't answer your question, I know - it just complicates it!

My personal view is that, if HSBC fails (anywhere), we are all doomed.............

lionheart

Don't you have to remain a UAE resident to continue holding an account? I don't know just curious. Meanwhile they are giving 5.3%interest on their Online Savings account against 0.1% in the UK so maybe worth hanging on. Like the man says, if/when HSBC goes down the tubes, some of us here will be up the creek without a paddle.

Emerald_Eyes

Hi Tooterelli,

As far as I know HSBC is actually one of the safest banks around at the moment. They have a minimal amount of toxic debt on the balance sheet due to having lower exposure to the bad mortgage and debt markets in the West and more exposure to the growing Eastern markets than many of its competitors. My other half is a banker and recently transferred most of his funds into HSBC rather than keep it in Barclays or some of the other UK retail banks which are pretty risky right now. I also have an account with HSBC.

This is not a recommendation from me though, I just work in the capital markets so I tend to hear about these things. You never know if there is some toxic debt hiding somewhere that will come out later, but HSBC is considered to be one of the less risky options out there right now.

Good luck x

Meow

I agree with these comments. No banks are totaly risk-free, but HSBC appears to be in a better position than most.

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Tooterelli

Thanks all for your responses - appreciated.

Lionheart - no problem keeping the account in Dubai when overseas. They send the statements to our overseas address too.

Cheers again

rachdubai

My savings are all in Citibank (Dubai) at the moment and I had been thinking of moving them out to another bank over here. Not an informed decision as finance isn't one of my strong points, more a gut feel having read recent press reports. Do you think a move to HSBC would be a wise move?

Thanks in advance for any advice.

lionheart

Here is the official view of HSBC Middle East to my enquiry about their financial position and how it might affect my savings.


Thank you for your email dated 22 February 2009.

With reference to your enquiry, please be informed that HSBC is one of the largest foreign banks in the UAE. It has been confirmed that the announcement relating to protection of deposits for the next 3 years will cover all UAE based deposits held by national banks and foreign banks which have significant operations in the UAE. In any event, HSBC Bank Middle East maintains strong capital and liquidity ratios in order to fully meet any and all its business obligations.

Furthermore, kindly note that the Investments made in wealth management products will not be covered by the guarantee. If the investment has been made in a product that has been issued by the HSBC Group, customers can take reassurance from the fact that it is one of the world's largest, most stable and best capitalized financial institutions.

For further enquiries related to this issue, we suggest you kindly contact us by replying to this email or by calling our Status Line on 8004420 (within UAE) or + 971 4 2288007 (outside UAE).

Thank you for banking with HSBC Bank Middle East Limited.

Yours sincerely,

HSBC Bank Middle East Limited
e-Customer Service Team

123woody

I agree with many of you, if this one fails then it really would be last one out switch off the lights.
But then at the moment what is safe anywhere?