HSBC Holdings, Europe's largest lender, has made a significant move to bolster its geopolitical expertise by appointing David Quarrey CMG as its new head of public affairs.

The appointment, first reported by Sky News, comes as the bank braces for intensifying global political challenges, particularly in China.

Mr Quarrey, who has served as the UK's permanent representative to NATO since April 2022, brings a wealth of diplomatic experience to the role. His distinguished career in public service includes stints as private secretary to former prime minister Tony Blair and as Britain's ambassador to Israel.

The appointment underscores HSBC's commitment to navigating its unique global footprint amidst rising international tensions. With deep historical ties to China and a major presence in the US, the bank faces the challenge of balancing its interests in increasingly polarised markets.

Mr Quarrey will join HSBC's executive committee, reporting directly to chairman Mark Tucker and newly appointed chief executive officer Georges Elhedery. His role will be crucial in guiding the bank through potential geopolitical headwinds, including the prospect of a second Trump presidency in the US and ongoing friction between Western nations and China.

The new public affairs chief replaces Sir Sherard Cowper-Coles, who stepped down last year following controversial comments about UK-China relations. Mr Quarrey's appointment is subject to approval from the Advisory Committee on Business Appointments (ACOBA).

Industry insiders cited by Sky News and The Telegraph suggest that Mr Quarrey's compensation package could potentially reach seven figures, reflecting the critical nature of his role in managing HSBC's global relationships.

The move highlights the growing importance of geopolitical expertise in the banking sector, as financial institutions increasingly find themselves at the intersection of international politics and global finance.

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