Flockhart, who is 60 and chairman of Europe, the Middle East, and Africa and well as Latin America and commercial banking, was not expected to be immediately replaced in his executive role, a spokesman for the bank said.

He will also retain his positions as chairman of HSBC Bank plc, the group's UK and European subsidiary, chairman of HSBC Latin America Holdings and a director of HSBC Bank Middle East.

The bank said he would remain on the board as a non-executive director. The changes take effect at the end of April.

In his new role Flockhart will be paid an annual director's fee of 95,000 pounds and he still has outstanding share awards under various HSBC reward plans.

Flockhart joined HSBC in 1974 and started out in the Middle East, before moving to a top position in Asia, HSBC's big revenue driver. He was also chief executive for various countries, including Mexico and Thailand.

(Reporting by Sarah White; Editing by Greg Mahlich)

• A Permanent Economic Emergency