Company: HBCYF
Filing Date: 2025-06-02
Form Type: 424B5
Source: 0001193125-25-132352
Chunk: 45

Company: HSBC HOLDINGS PLC
Filing Date: 2025-06-02
Form: 424B5
Chunk 45
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roup permissions. A two phase review of Pillar 2A has also been initiated by the
PRA through the publication of CP12/25, which addresses the impact of the near-final rules implementing Basel 3.1. The second phase of the review, containing a more in-depth analysis of the individual
methodologies within Pillar 2A, is intended to be published separately.

In addition, on June 26, 2020 the EU enacted a banking
response to the Covid-19 pandemic (the “CRR Quick Fix”). The CRR Quick Fix included, among other things, provisions extending the transitional phase-in
arrangements in relation to IFRS 9 under CRR to the end of 2024. These provisions were retained in UK CRR, but the transitional arrangements expired at the end of 2024. Further, our minimum regulatory capital requirements may increase as a result of
increased provisioning under stress associated with our adoption of IFRS 9 as of January 1, 2018, the magnitude of which will depend upon several factors, including the specified stress scenario. See “—Risks Relating to the Securities—The circumstances surrounding or triggering an Automatic Conversion are unpredictable.”

Separately, certain
aspects of the UK regulatory regime may restrict or prohibit us further from making interest payments on the Securities in certain circumstances. For example, under the UK Banking Act 2009, as amended (the “Banking Act”), which implemented
the EU Bank Recovery and Resolution Directive (“BRRD”), the Bank of England is required to set a minimum requirement for own funds and eligible liabilities (“MREL”) for banks in the UK. The current UK MREL regime, which took
effect on January 1, 2019 at a level which increased until January 1, 2022, has been designed to be broadly compatible with the term sheet published by the Financial Stability Board (the “FSB”) on total loss absorbing capacity
(“TLAC”) requirements for G-SIIs. Furthermore, with effect from June 27, 2019, G-SIIs (including us) are subject to a harmonized MREL requirement, in
addition to institution-specific requirements under the BRRD regime. The Bank of England is currently consulting on proposed amendments to its approach to setting MREL requirements which seek, among other things, to ensure that the UK’s MREL
framework is simplified and consolidated and keeps up to date with, and is responsive