HSBC, EUROPE’S largest bank by market value, has decided against relocating its headquarters following a review lasting several months, in a rare boost for the battle-weary City of London.

HSBC has concluded its latest review, which it conducts about once every three years, by deciding that London continues to be the most appropriate location for the headquarters of a financial institution of its scale.

The outcome of the review, which was overseen by Stephen Green, HSBC’s executive chairman, and Michael Geoghegan, its chief executive, represents a fillip for the Government. The Treasury has been stung during 2008 by the decisions of a number of major companies to relocate to international jurisdictions including Dublin and Luxembourg because of uncertainty about tax policies.

Sunday Telegraph