4 - 10 May 2000

Debtors should honour their commitments, says HSBC chief

by Franco Aloisio

HSBC chief executive Tom Robson yesterday said it was important that debtors honour their commitments with the bank and pay their dues according to established repayment schedules.

Mr Robson was asked by The Malta Business Weekly about the persistent rumours stating that HSBC has over the past months being putting considerable pressure on debtors to pay their dues, threatening to confiscate property and immovables.

"On the comments that HSBC is putting pressure on people with house loans, all I have to say is that such a policy was adopted four or five years ago, well before HSBC ever dreamt to come over to Malta. We have followed through what already existed," said Mr Robson.

"There has been no change in policy. However, HSBC believes that it is important that clients agree on a repayment schedule, and we will be looking to make sure that they honour such commitments and stick to them," he said.

On the first year of operations in Malta, Mr Robson said the bank has made considerable progress. "We have brought the HSBC brand in Malta, and introduced a range of different products and services, many of them have been developed in 81 countries.

"As the financial services sector gets off the ground, we will be able to play a wider role. We have a lot to contribute locally and abroad. For instance we will be trying to bring over to Malta HSBC's Treasury operation, the largest in Europe, and the investment banking opportunities. We are talking with the regulator and the government and they are very keen to learn from us," he said.

On the lowering of the interest rates, Mr Robson said this had nothing to do with the arrival of HSBC in Malta.

"Our arrival in Malta had nothing to do with the lowering of the base interest rate to 4.75 per cent. Interest rates are now at the lowest levels in these last years. We have to make sure that the rates charged to customers have also to be brought down as well.

"The bank has to be understanding of the customer's needs. We will invest in those customers who we think will be successful in their business. Our attitude is not to look for security or high margins, but rather to look into what is right for our customers," Mr Robson said.