HSBC Bank Polska's development delayed by PKO BP tender

HSBC Bank Polska's development will, for now, be limited to credit operations, as it is constrained by the regulations concerning the tender for the role of privatization advisor to PKO BP, in which investment bank HSBC, its parent company, is taking part. One of the conditions of the tender prohibits applicants from competing with PKO BP. "In spring 2003, HSBC bought American Household, which resulted in a merger of the companies in Poland as well. The American bank was planning to prepare a new project connected with purchasing Polski Kredyt Bank. Finally, HSBC bought the bank and commenced its own operations," said Chris Ignatowicz, president of HSBC Bank Polska. The institution has signed 50 contracts with its trade partners and, as a result, it offers cash loans in their outlets. It also plans to begin cooperating with hypermarket chains and, in mid 2004, it will offer corporate services. Its share capital will be increased in order to keep within the 8.5% solvency ratio. (Puls Biznesu, p. 9) M.M.