The banking group is retaining London as its group headquarters, ending a review of its position. A move had been a serious possibility.

UK/Hong Kong-listed HSBC said today it will continue to hold its headquarters in London, ending months of speculation that the banking group will shift to Asia because of concerns about a possible UK exit from the European Union and a government bank levy.

The lender said its board unanimously voted to keep the headquarters in the UK, according to a statement today.

"HSBC’s strategy is founded upon supporting trade and investment flows across the world’s major trade corridors as well as helping its retail and corporate customers to meet their financial needs and fulfil their ambitions. The extensive reach of the group’s international network and range of its product capabilities position it well to succeed with this strategy. The UK is an important and globally connected economy. It has an internationally respected regulatory framework and legal system, and immense experience in handling complex international affairs. London is one of the world’s leading international financial centres and home to a large pool of highly skilled, international talent. It remains therefore ideally positioned to be the home base for a global financial institution such as HSBC," the statement said.

It continued: "Asia remains at the heart of the group’s strategy. In its investor update in June 2015, the group announced a ‘pivot to Asia’ as a core part of its strategy. Led from its heartland in Hong Kong, itself a top three global financial centre and where The Hongkong and Shanghai Banking Corporation Limited is headquartered, HSBC is putting particular emphasis on investing further in the Pearl River Delta and ASEAN region. This reflects increasing shifts in global trade and capital flows to and from Asia, in respect of which Hong Kong will play a pivotal role."

Last year, the bank said it was reviewing its options, citing concerns about a possible departure from the EU, and the UK government's banking levy, as reasons why it was open to the idea of shifting its HQ. Also, the bank's strong historic and current links to the Asia region were seen as factors pushing a  possible move.

A move to Asia for the bank's HQ would have been a serious blow to the UK government in its bid to ensure London remains one of the dominant financial centres of the world and would have added to perceptions of Asia's rise. It also appears that recent wobbles in the Asian regional economy may have played a part in HSBC's decision.

Banks such as HSBC are reviewing the shape of their global footprints, shutting some booking centres in markets where they feel they cannot get sufficient scale, and focusing on other areas. In HSBC's case, it has closed operations in Brazil and Turkey, and is putting more focus on markets such as in Asia.

"The UK itself is also positioned to be the leading western financial centre supporting the internationalisation of the renminbi, is growing its trade and investment flows with China, and is building co-operation in key areas of infrastructure financing, ‘green’ bond financing and mutual access to traded markets. HSBC is actively involved and a leader in all these areas," the bank said.

HSBC's chairman, Douglas Flint, said: “As we evaluated jurisdictions against the specified criteria, it became clear that the combination of our strategic focus on Asia and maintaining our hub in one of the world’s leading international financial centres, London, was not only compatible, but offered the best outcome for our customers and shareholders."

The banking group says it will continue to review its HQ options every three years.

Last week, the bank said it had decided to overturn an earlier decision to freeze global pay.