HSBC's retail banking and wealth management businesses in Singapore will be incorporated into a local subsidiary, HSBC Bank (Singapore) Limited.

The transfer of the retail banking and wealth management business, which are currently under the HSBC Singapore Branch, will be completed by May 9, 2016, the bank said in a statement.

The move is to comply with a directive of the Singapore Monetary Authority in 2015, which said banks classified as D-SIBS (domestic systemically important banks) should locally incorporate their retail operations.

HSBC is one of the seven banks the central bank has classified as D-SIBS. The other banks in this category are DBS, OCBC, UOB, Citibank, Malayan Banking and Standard Chartered.

"The transfer of our Retail Banking and Wealth Management business in Singapore to a locally incorporated subsidiary reflects the success, scale of growth and significance of our retail business in this market," Guy Harvey-Samuel, HSBC's Chief Executive Officer for Singapore, said.