The Bank of Butterfield has joined a group of companies to start the Island's first Internet bank.

A petition to Parliament for consideration of the Bermuda Internet Bank Ltd.

Act was published yesterday.

A limited liability company, the bank includes as its partners the Bank, Mutual Risk Management, Keytech Ltd. -- the parent company of the Bermuda Telephone Company, ACE Insurance, and Natsteel Technologies.

Also among the petitioners is Sami Midani, a Singapore-based banker.

Bank president Calum Johnston said yesterday the move to start the bank was part of efforts to keep up with changing trends and take advantage of Bermuda's infrastructure.

The Bank's Internet service will be available to Bermudians but it is expected the bulk of its business will come from overseas.

"The Bank of Butterfield has a small interest in this venture,'' Mr. Johnston said. "We looked into it and I don't believe that we have the management talent to do it on our own.

"But we have allied ourselves with a good team and it will see a small investment from us. It's just us trying to be a part of a new way of being.

This couldn't be safer.'' The process of getting the start-up bank incorporated would take some time, but Bermuda's assets would make it a good venture, he said.

"This is something that we have been working on for many months,'' Mr.

Johnston explained, "with a group to make use of Bermuda's position, with the E-Commerce laws that it has and good communications with the world.'' He added: "It's not likely to have a large amount of business in Bermuda, although if we are granted a banking licence, we would offer this to any Bermudians.'' Mr. Johnston said he did not know how long the whole ratification process would take, before the bank begins trading.

About Mr. Midani, Mr. Johnston said: "He's a banker who resigned (from a bank) some months ago to put this together. I've known him for some time.'' The bill seeks to incorporate the Bermuda Internet Bank under the Banks and Deposit Companies Act of 1999.

It will be a local company under the Companies Act, meaning it will pass the Island's 60/40 rule, in which the majority of the business must be owned by Bermudians.

All of the usual banking practices are expected, including loans, deposits, dealing in securities, bullion, precious and other metals, foreign exchange, and financial instruments including futures and options.

Rights to transact in bankers, credit, and debit cards are also asked for as is the arranging and sponsoring of public and private issues of shares and loan capital.