HSBC chair Stephen Green accepts job as trade minister

HSBC's chairman Stephen Green has confirmed he will step down from his post to take up the role of UK's minister for trade and investment in what many agree is a 'coup' for the coalition government.

The bank has agreed Green will step down as chairman of HSBC Holdings plc before the end of the year and said he will take up his new role in January 2011.

In a statement the board thanked Green for 'his immense contribution and commitment to HSBC over 28 years, in particular his outstanding leadership as chairman during the financial crisis.'

Green joined HSBC in 1982 and became an executive director in 1998. He served as group chief executive from 2003 to 2006 before his appointment as group chairman.  

Mr Green said it was an 'honour' to accept the new role and said he was leaving HSBC in safe hands of the 'most talented executive team in banking'.

Ahead of the confirmation City traders and analysts sang Green's praises.

Green is also steppping down as deputy president of the CBI and chairman of the British Bankers' Association.

Helen Alexander, CBI president, said: 'Stephen's extensive international business experience makes him ideally suited for this pivotal role. He cares deeply about the UK as a place to invest and do business, and his knowledge of developing markets in Asia and beyond will make him a great asset. I am confident that the CBI’s loss will be a significant gain for UK plc.'

Green, an Anglican lay preacher, is well respected for his stewardship of the world's largest bank, for both his level-headed approach to banking regulation as well as for the strength of the bank's business.

The bank has traditionally had a careful approach to lending and in the UK loan to value rates remain well below the industry norm.

The one blot on HSBC's copy book - the acquisition of US subprime lender Household -  was made before Green took over the helm but under his leadership the group did manage to absorb the massive losses there without turning to the taxpayer for help.

His time at HSBC also means Green has plenty of experience in Asia, where the government believes it will be key for the UK to do more business in the future.

According to its most recent results, Asia accounted for just over 50% of group profits and the success in the region was one of the main reasons the group was able to double profits to £7 billion in the first six months of the year.