HSBC says it will axe 1,700 jobs in UK

HSBC is to cut more than 1,700 jobs across Britain, a spokesman for the global banking group said on Tuesday.

HSBC will axe "just over 1,700" jobs, a spokesman told AFP, confirming media reports. An official statement from HSBC explaining the cuts was due later on Tuesday.

The announcement came as the British government unveiled a major shake-up of the country's banking sector and one day after state-controlled Royal Bank of Scotland (RBS) said it would eliminate about 3,700 jobs across its British retail operations.

The government on Tuesday said it would force RBS and another state-controlled bank, Lloyds Banking Group, to sell assets to promote competition but would support them with STG30 billion ($A54.36 billion).

Britain's government expects new banks to be born as a result of the break-ups, which are the result of pressure from EU competition authorities.

Tuesday's announcements come one week after the European Commission approved the state aid in plans to break up and sell Britain's nationalised bank Northern Rock.