Multinational banking giant HSBC Plc was intent on coming into Bermuda ? with or without the Bank of Bermuda.

HSBC ? the world?s second largest bank on a market capitalisation level ? has agreed to buy the Island?s largest bank for $1.3 billion, with the deal set to be voted on by shareholders next month. Yesterday, in an address to members of banking association Institute of Financial Services, bank CEO Henry Smith said HSBC?s chairman Sir John Bond revealed his keen interest to have a presence on the Island ? even if the bank had turned down its offer ? during his visit this week.

Sir John was on the Island for three days to meet with bank stakeholders ? including taking part in a breakfast meeting on Tuesday with business leaders and the chairman of the Bermuda Monetary Authority Cheryl-Ann Lister.

Mr. Smith said that Sir John revealed that he would have applied to set up in Bermuda, even without the Bank of Bermuda.

?Sir John told the chairman of the BMA at the breakfast that if the bank?s board had not accepted the offer, he would have been knocking on the BMA?s door to get a licence to start (in Bermuda) from scratch.?

It is something that HSBC realistically may have been able to do with their bid for the bank following Government?s announcement that it would be opening up the Island?s until now closed financial services sector ? including letting in foreign banks. Yesterday Mr. Smith said opening up the banking sector was something they originally feared, but no more. Now they were whistling a new tune in full support of the revised policies governing the sector.

?HSBC brings so many things to the the table, we never could have had alone.

?This aligns perfectly with Government?s strategy of opening the sector ? and we agree with that. But it scared the dickens out of us when we first heard it.?

Mr. Smith said Government saying it could open up the sector ? meaning stiff competition coming in for the Island?s existing banks ? was something the bank pondered, and found ?made sense for Bermuda? and they thought they ?had better get onside?.