HSBC is considering spinning off its UK retail bank in a deal worth about £20bn as part of its plan to move away from the UK, according to a Sunday Times report.

A spinoff will advance proposals for HSBC to move its headquarters out of the UK and will result in recreation of Midland Bank, which HSBC bought in 1992.

The decision results from a UK law that requires lenders to separate their domestic retail operations from the rest of their business by 2019.

The bank has said earlier that it is reviewing whether to move its headquarters out of the UK because of rising tax and regulatory costs.

HSBC chairman Douglas Flint has been under pressure from investors to consider leaving Britain, where a bank levy cost the firm £750m in 2014.

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