THE shakeup in the private banking industry here continues with HSBC now retrenching 20 people. This follows similar - and in some cases, ongoing - layoffs at other private banks.

'We confirm that HSBC Private Banking in Singapore has made redundant 20 jobs,' an HSBC private bank spokesman said in response to BT's queries. 'Market changes have significantly altered the operating conditions for businesses. The changing market conditions have led us to a review of our private banking business to ensure that we remain competitive and well placed to serve our clients effectively.

' In refocusing our business to better meet the changing market conditions, we have arrived at this very difficult decision as a last resort.'

BT understands that 14 of these staffers are from the marketing side, and another six from investments.

HSBC, despite being among the global banks that are least affected by the financial crisis, has already said it will cut about 100 private bankers in Hong Kong.

Meanwhile, other private banks here have also been taking the opportunity provided by the economic slump to quietly lay off staff, albeit in relatively small numbers.

UBS, which has been badly hit by the financial crisis, has retrenched several dozen staffers in Singapore as part of its global effort to cut 11,000 jobs.

Similar low key retrenchments and outplacements have been taking place in several other global private banking outfits here. In some cases, particular country teams - such as Pakistan and Turkey - have been affected.

But industry insiders tell BT that playing out behind the scenes is also a game of 'musical chairs', with bankers who leave one outfit popping up at a rival bank about three months later.

'Essentially, if you have a potentially valuable client portfolio, you are still in demand,' said one industry veteran.

Though there are strict rules preventing bankers from soliciting clients to follow them to their new outfits, there is little to stop clients following their favoured bankers on their own accord.

Singapore is one of the two major Asian booking centres for private wealth from around the region. But the global financial crisis, and the resultant volatility of stock and currency markets, has resulted in private bank clients from Indonesia, Hong Kong and Singapore to lose tens of millions of dollars over the past year.

In addition, booking centres like Singapore could also be hit by proposed changes to global offshore secrecy requirements currently being considered.

Singapore is one of 38 countries highlighted by the Organisation for Economic Cooperation and Development as having agreed to comply with its recommendations, but no details have yet emerged about how bank information will be shared with the foreign tax authorities.