LLOYDS, ROYAL CANADA TRIM HONG KONG OPERATIONS
Lloyds Bank Plc <LLOY.LON> and the
Royal Bank of Canada <RY.TOR> are winding down the primary side
of their capital markets activities in Hong Kong, the chief
executives of the two banks said.
    "We are withdrawing from the primary market in Asia," said
Barry Maddams, Lloyds' general manager here. "It is basically
unprofitable."
    The bank's treasury and capital markets activites,
previously conducted separately at the commercial bank branch
and its merchant banking arm Lloyds Asia Ltd, are now being
consolidated within the commercial bank, he said.
    Maddams said the bank has not decided whether it will
surrender Lloyds Asia's registration as a deposit taking
company (DTC), but it will keep another DTC registration for
LBI Finance (HK) Ltd as a booking vehicle. He did not say how
many jobs will be affected.
    Royal Canada has surrendered the licence of its DTC unit
Orion Royal Pacific Ltd, though it still has some assets and
uses the name, said Vincent Fan, bank chief executive here.
    He said 16 jobs will be lost due to the phase-out of
merchant banking, while syndication and other banking
activities will be continued by the commercial bank.
 REUTER
