HSBC chair Stephen Green accepts job as trade minister

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. 

Les Ames, head of dealing at broker WH Ireland, thinks Green's 'level headedness' will have a calming effect in government.

'He will have a calming hand. He said a while ago bankers need to take greater responsibility for their actions,' Ames said, pointing out that Green will defend bankers' interests but will also admit where the banks did get it wrong. 

Another analyst who asked not to be named said 'I have no idea what a trade minister does. But he is hard working, bright, has a huge breadth of knowledge, is articulate and has scruples. Surely not the stuff that our politicians are made of?'

There are other reasons why Green is so well respected in the City. Under Green's stewardship HSBC boosted its green credentials by donating hundreds of millions to environmental charities. Green is also well known for his own personal largesse.

David Buik, market analyst at BGC Partners, said : 'Stephen Green is a fantastic banker as well as being a fully paid up member of the human race. This is a great coup for the Cameron coalition. He is universally respected!'

HSBC shares were outperforming a weak banking sector, down just 0.8p at 662p as few think the bank will struggle to find a replacement for Green.

Buik said: 'HSBC is generally considered the best run bank in the world and it will have no difficulty attracting copious excellent candidates to be chairman.'

He also suggested that Green's appointment would reassure those worried that Britain remains one of the only countries in the world still considering whether to split up the banks.

'If Stephen Green is confirmed as a minister that may be very good for HSBC. He may be able to persuade the government not to be too draconian in its treatment of banks, forcing HSBC to head to Hong Kong or Sydney,' he said.