Finance Minister Paula Cox yesterday called the sale of the Bank of Bermuda to multinational banking giant HSBC Plc a "watershed event in our continuing efforts to develop our country as a world class capital market".

Ms Cox spoke of the benefits for Bermuda in the HSBC deal, after it was voted through by shareholders on Monday afternoon. It is the first time she has publicly spoken on the sale of the Island's largest bank, after having taken up the Finance Ministry reins from her father, the late Eugene Cox.

Mr. Cox died last month after having been diagnosed with stomach cancer last year.

Under his watch as Finance Minister, Government decided on a policy of opening up the Island's financial services sector and he publicly backed HSBC's desire to buy up the Bank of Bermuda.

Yesterday Ms Cox said the deal would lay the way for future business.

"This would raise Bermuda's profile and provide a platform for attracting further business," she said.

She also confirmed her intent to carry out the opening up of the sector, in keeping with the path set by her late father, and cited the move as one that would create minimal strain for the Island's infrastructure.

"The transition is consistent with Government's approach to the development of the financial services sector in Bermuda. Over the last several years, international companies and providers of financial services have become important underpinnings of the Bermudian economy. Consequently, the expansion of financial services has been assigned a high priority."

But she did not deny that the sale marked a shift for the Island ? it being the first time a local bank has been sold to a foreign corporation. At the same time she cited the development as important as it would expand the Island's international business sector, which has been largely built around the well-established re/insurance sector.

"Change, by its very nature, poses challenges and also provides opportunities," she said. "HSBC's coming to Bermuda is a watershed event in our continuing efforts to develop our country as a world class capital market.

"We are recognised as a leading jurisdiction in the provision of insurance and reinsurance products, and this transaction will help us to enhance the array of services provided by the banking sector."

In addition, she listed the benefits as; sustainability, with the economic expansion of a sector that will have minimal impact on the country's infrastructure; a boost for Bermuda's reputation with its attraction of a well-known, respected, global, innovative financial services corporation; HSBC's augmentation of the array of financial services available to all segments of the Bermuda market; opportunities for indirect business development and expansion; long-term creation of employment opportunities; and HSBC's ability to offer training and development opportunities locally and through its global network.

She said: "HSBC Holdings Plc ? the world's local bank ? introduces a global financial leader into Bermuda's economy. It brings the entire Bermuda community a broadened array of financial products and services.

"At the same time, it expands the importance of the banking and financial services sector of the economy. There is likely to be only minimal strain on Bermuda's infrastructure as a result of the transaction. HSBC has also given an undertaking to list its shares on the Bermuda Stock Exchange and to relocate some of its activities from other offshore jurisdictions to Bermuda.

This would raise Bermuda's profile and provide a platform for attracting further business.

"The market impact (of the sale) should be positive and beneficial to businesses and households as a result of greater competition and therefore better pricing of financial services products."

However, Ms Cox also pledged to pursue Government's plans to grow the financial services sector, with an eye on what would create long-term benefits for Bermudians.

"Our challenge as Government is to manage this comparative advantage for the long term benefit of all Bermudians.

"I think that our record as Government demonstrates competence and success in this key area of economic policy."