Mr. Collins is responsible for both corporate and retail banking services offered by the bank.

The deal, which was announced at a joint Press conference on October 28, is still subject to shareholder and regulatory approval and not expected to close until the first quarter of 2004.

HSBC has said that the Bank of Bermuda's profit-making fund administration arm ? Global Fund Services ? and its private banking services were key to its being attractive to buy. HSBC also intends to move its trust business to Bermuda.

However, Mr. Collins said HSBC's number one goal was not only to maintain but to grow and this could be applied to the retail side as well.

"Retail is a significant part of our business.They also want to put extra attention on mortgage business," Mr. Collins said.

Mr. Collins added that retail, contrary to popular opinion, was an earner for the bank.

"There is the misconception that we provide retail services because we have to. We do actually earn money from that business.

"HSBC will help provide a level of service that we couldn't do on our own. There are only upsides for the Bermuda customers," he said.

Mr. Collins said from a community banking perspective nothing was going to change in the short term and any changes in the future would be "for the positive". He added that cheque books, debit cards and credit cards would eventually be re-branded. He said this would be done as quickly as possible, and with as little disruption to customers as possible.

"If we make changes to products, for example better home equity lines, or on the administrative side, we want to keep things as simple as possible from the customer's point of view.

"We are working with HSBC to create as little turmoil as possible for customers."

Speaking a little bit more about the re-branding of the bank to incorporate the HSBC logo, Mr. Collins said: "There will be a somewhat different look and we will do that as quickly as we can.

"We are currently looking down the list of services and what we can do quickly.

"We would also like to change the look of the retail design," he said, adding that this was something the bank had intended to do even before the proposed sale was announced.

Mr. Collins said: "Mortgages will continue to operate exactly as they do today. We have had a lot of questions about mortgages.

"Let me assure customers that we would not change the terms and conditions on their loans to their detriment.

"We could not do that legally or ethically."

He added that HSBC saw great opportunity in the local mortgage market.

"HSBC is very excited about the mortgage market locally. Given the Bank of Bermuda's size and relatively small capital base, it has been precluded from increasing its level of loans.

"Historically the bank has lent about 17 percent of its assets in loans.

"That was true on mortgages and loans on the international commercial side. We have had to be very careful. HSBC's (ability to lend) will be much greater than that. It can do that as it is so much bigger.

"HSBC is very conservative on the credit side, and we don't expect that to change.

"What will change is that they have a much bigger balance sheet to lend against.

"Bermuda is a very attractive financial proposition for both us and HSBC, with its attractive real estate market. The goal is not only to increase the dollar amount but also the types of loans, including various types of home equity lines."

He added that the lending process would also be streamlined.

"Today we (at the bank) don't do a lot on credit scoring.

"We don't say here is a potential buyer, for example, a couple with solid jobs, good incomes from jobs they have worked at for five to seven years each. We do not use those behaviour methodologies to measure what kind of borrower we would like to lend to.

"Doing that will be more efficient than what we do now by doing an individual background check.

"Credit is always a difficult subject.

"But a much broader approach will allow us to provide loans more quickly.

"HSBC is conservative and will be working within their guidelines but changes should make (getting a loan) a better experience for the Bermuda market."

Mr. Collins said it was too early to predict exactly what would happen with its mutual funds offering: "We have to compare what we offer to their mutual fund offering and do what makes the best sense. But it will be a seamless transition should we move from our mutual funds to HSBC funds, for example customers would be invested in a like fund, a fund that was of the same asset class."

@EDITRULE:

Q: There are currently eight branches ? do you expect that number to change?

Mr. Collins said: "What we have in terms of branches and ATMs will certainly continue in the short term. We will work over time on what works best in the Bermuda market."

He added that teller services would not be phased out in favour of online banking: "For some time, we have been encouraging customers to use online channels ? Easy Link Online and the call centre.

"When you compare the services, it is much more satisfying to conduct transactions online than to go into a branch. We think that is the way the market is going but the branches are not going away."

Mr. Collins said it was less expensive to do business online, for the customer and lower costs on the bank's side.

"We will continue to offer both services, but there will be lower charges to customers who use the electronic platforms. It is more efficient for the customer and less expensive from our side. But for those who prefer to come in or fax through specific instructions, that service will be available. We won't be taking away any services," he said.

"Under HSBC, services will be enhanced. We are very excited about their primary product, HSBC Premier, which is essentially an electronic global financial service. It will introduce new services to Bermuda. Essentially, a customer's financial world can now be managed online, as well as other unique features.Mr. Collins continued: "Customers will be able to do a lot through HSBC Premier but they can also come in and do business face to face. Access to banking services will be available in the manner that makes the customers feel comfortable."

Mr. Collins said: "We are staying open minded looking at who has the best technology. Once the sale closes, we will go through a gap analysis to analyse where their system is better or where ours is better, and ultimately, what provides the best functionality for this market."

He added: "HSBC has been very careful to make sure they tailor their services to the local environment.

"And they have done this around the world."

Mr. Collins said that being the customer of a bank the size of HSBC ? globally the multinational bank is represented in 79 countries ? meant that customers could take their credit history with them if they relocated.

"Someone leaving Bermuda can move their credit history virtually anywhere in the world.

"That makes it easier to take out a mortgage or loan anywhere in the world where HSBC has an office."