Bermuda.

But she said MPs had to follow the advice of Bermuda Monetary Authority experts -- which was why a private bill to allow businessman Andre Heyliger to set up the First International Citizens' Bank was not backed by the Private Members' Bills Committee.

Ms Gordon told the House of Assembly: "We agree in principle with the concept of a fourth bank, in this case the First International Citizens' Bank.'' But she added: "However, the Monetary Authority has found that the applicant has yet to meet the standard requirements which must be in place in order to protect the depositors' money and Bermuda's reputation.

"Let me be clear -- when this, or any other applicant, satisfies the required guidelines for protecting their depositors' money and the country's reputation, we encourage the applicant to apply.

"In the meantime, we concur with the Monetary Authority's recommendations to not approve the application at this time and, I underscore, at this time.'' Mr. Heyliger said last night: "We certainly want to review the full content of the Private Bills Committee ruling to establish all the issues.'' He added: "I'm the eternal optimist -- I've always known this was, and is, a good idea.'' And he vowed to battle on until he got the go-ahead to open his bank for business.

The Private Members' Bills Committee also knocked back a controversial bid by the Bank of Bermuda to dodge the 60/40 rule designed to ensure majority Bermudian ownership of businesses.

Premier backs BMA on fourth bank The Bank wanted an exemption so it could drum up cash with a listing on an overseas stock exchange, as well as its current listing on the Bermuda Stock Exchange.

But Ms Gordon said: "We agree in principle with allowing the Bank of Bermuda to expand by raising equity capital in the international marketplace.'' And she added: "The Monetary Authority has no objections to the bank's application being approved.

"In addition, there are safeguards in place so that the benefits of the 60/40 exemption will be realised here in Bermuda, both in new jobs and in increased value locally. We concur with the Monetary Authority's position.

Bank of Bermuda president Henry Smith said: "The Bank is obviously delighted that Government has decided not to accept the reported recommendation of the Joint Select Committee on Private Bills and has instead concluded that our bill has merit and that they are prepared to table it in the House.'' Mr. Smith added that passage of the bill was "crucial'' to the future of the Bank of Bermuda. He added that other options were available, but that the 60/40 exemption was "far and away the best manner for the bank to proceed.'' And he said that the Island community understood that the 60/40 rule -- designed to protect Bermuda-based businesses from overseas predators -- was not applicable to a global enterprise like banking.

Mr. Smith added: "We very much look forward to the consideration of this bill next Friday and we are optimistic that a growing recognition of the bill's long-term benefits for Bermuda will provide a broad base of support both in the community and the legislature.'' Ms Gordon told the House that Bermuda banking and financial matters were followed closely across the world.

She said: "Bermuda can ill-afford to have its solid reputation for financial soundness undermined or misinterpreted in any way.

"Therefore, I urge those commenting on the issues to stick to the financial and procedural facts.'' And she stressed: "The position of the United Bermuda Party Government is clear in its support on both issues.

"We support the concept of a fourth bank when its applicant satisfies the required guidelines.

"We support the application of the Bank of Bermuda to enter the international capital markets.''