There have been expressions of interest from overseas banks looking to open up shop in Bermuda, according to Finance Minister Paula Cox.

But the Minister said that none had come directly through Government and were at the moment "fairly loose" and it was not a sure thing that the Government would allow any to set up shop without further consultation.

"It is certainly something that could happen," she said when asked if foreign banks could come and set up on the Island. "That is an issue in terms of financial development and that one would be looking at how far if at all one does need to go. So I think it is certainly something that is on the radar screen, even if there is no immediate decision likely to be forthcoming in the next week or two."

Bermuda Government has pledged to open up the banking and financial sectors, hoping that it will be a new pillar for the economy.

With the decline in tourism and the strengthening of the insurance sector, Government has been looking at ways of diversifying the economy ? and has hit on the financial services sector as a possible area of growth.

"What we hear are the unofficial soundings of expressions of interest, certainly in talking to those who would and should know, because of the fact that they are in the banking business directly, but I have not got any direct information that there is any firm interest. And expressions of interest are fairly loose I think," she said.

As part of this overall plan of opening up the sector, Bank of Bermuda and Bank of Butterfield were both granted exemptions from the 60/40 ownership rules, and HSBC was granted permission to buy out Bank of Bermuda last year.

But despite shareholder approval of the HSBC buy-out of Bank of Bermuda this month, the move to allow overseas banks in to set up in Bermuda is still being debated, according to Ms Cox.

"I think it is still certainly under review," she said. "I think the HSCB initiative with the Bank of Bermuda was the first instance ever, but certainly we have a financial policy development committee which has made some recommendations and is now going to help move forward.

Certainly included amongst those recommendations will be how much we should be looking at opening up."

And she said that the new HSBC Bank of Bermuda has changed the way Bermuda is seen internationally for the better.

"I think it certainly has enhanced the area of financial services that are available," she said. "And even in connection with your prior question in terms of how we are perceived in term of the international, it certainly helps to indicate that we are a reputable jurisdiction which has a well considered banking institutions.

"If we had to choose ? and bear in mind this is not our venture, because it is on the private sector side ? but if we had to choose an economic indicator of a bank that we would like to attract if we were opening up down the road, as a deliberate policy, I think the thinking of any credible Ministry of Finance, then I think HSBC would fit the bill of ideal characteristics in what we would want in terms on international standards and also in terms of elevating ourselves as a financial services jurisdiction."

She said that that was looking at the deal purely from a financial services aspect ? but from a personal aspect she hoped that the new Bank of Bermuda management would be sensitive to the needs of Bermudians employed at the bank.

"As far as we are not an interventionist in terms of keeping the banking institutions, clearly we have a certain a clear interest in making sure the issues which impact on Bermudians are properly taken care of," she said. "And I would hope that... there is within the new entity that there will be the sensitivity to managers and individual expectations and interests of Bermudians who are employed at the bank."