HSBC will not need further capital injection

Chief financial officer of HSBC Holdings, the U.K. and Hong Kong listed bank, said it would not require a U.K. government bailout even if economic conditions continue to worsen.

The CFO Douglas Flint added neither was bank planning to raise additional capital from shareholders as it already did raise $17.7 billion earlier this month through a rights share holding. He stated the amount raised was enough to make the bank “robust in any set of circumstances bank analysts could foresee.

Moreover, Flint highlighted that Household Financial Corp., the bank's subprime lending arm in the U.S., would not require additional financial help from the rest of the group by the end of 2010. 

It should be reminded that officials of major American banks, including Citigroup Inc. and Bank of America Corp. stated last week the banks would not require any more capital injections from the U.S. government. Some lenders including Royal Bank of Scotland have been forced to accept public funds from the U.K. government.