According to Reuters, a spokesman for the bank stated that the license application was submitted in October 2006 but HSBC has yet to receive a response from the Russian authorities. He added that there was no indication as to how long the process is expected to take.
At present, HSBC already has an office and an expanding corporate and investment banking business in Russia. With the addition of a retail presence, its profile would be greatly enhanced in the rapidly growing Russian market.
Leading foreign competitors in Russia include Societe Generale, which Reuters has reported to have a multi-stage deal to acquire control of Rosbank by the end of 2008. Austria’s Raiffeisen International and Bank Austria Creditanstalt, would also pose significant competition to HSBC in the Russian market.
