HSBC is the top potential bidder for the rest of the Royal Bank of Scotland's retail and commercial assets in Asia, media reports reveal.

People close to the matter say that the two banks had already struck a deal. China, India, and Malaysia are reportedly on the table and are simply awaiting approval from their respective regulators.

HSBC has declined to comment on the matter, while RBS said it will make an official announcement if and when it is available.

The speculation on the RBS assets comes at a time of busy merger and acquisition activity in the wealth management and financial services sectors, as firms such as RBS look to spin off non-core assets and raise capital, while other firms look to pick up discounted assets to expand their market share.

RBS had begun divesting its Asian assets in March this year after suffering major losses from the global crisis. These include 28 India-based and 13 China-based assets worth a total of around $300 million.

Standard Chartered and Australia & New Zealand Banking Group were originally part of the list of bidders but had opted to stay out of the game. HSBC is the only natural buyer left, given that it already has built a presence at the locations from where RBS is letting go of its business units.