[HSBC's sale of French retail business may run aground due to sharp rise in local interest rates] HSBC Holdings said that the rise in interest rates cast doubt on the future of a deal to sell its French retail banking business. it could hamper its plan to streamline its global operations. The UK-based bank said in a statement on Friday that "there has been an unexpected sharp rise in interest rates in France" since it signed a memorandum of understanding with My Money Bank, a private equity firm, in 2021, leading to higher capital requirements for buyers, which could put the deal in jeopardy. "the buyer group has told us that they believe they will not be able to obtain regulatory approval if they do not change the previously agreed terms of the deal," HSBC said. "the two sides are continuing discussions. If the deal does go ahead, it is expected that the deal will be delayed. "