Europe’s biggest bank HSBC announced on Monday that it has decided to keep its headquarters in London.
The bank through a unanimous vote by its board has also rejected the option of shifting its centre of gravity back to main profit-generating hub Hong Kong after a 10-month review.
This has now given a boost to London’s status as a global financial centre.
Nevertheless, HSBC CEO Stuart Gulliver has warned that the bank could not stick with the status quo were Britain to vote in favour of leaving the European Union in a promised referendum.
Gulliver said around 1,000 employees will be moved from London to Paris if Britain votes to leave the EU.
The decision to stay in London comes after a tumultuous period for European banks, whose shares have tumbled on fears of a global economic slowdown and the impact on earnings from a prolonged period of low or negative interest rates.