A new financial industry association has been formed in Bermuda. The Bermuda Banker's Association will serve as the main representative body for banks and deposit taking/lending firms on the Island.

Similar to banker's associations in other important financial jurisdictions, the BBA will serve as an industry think tank, lobby group and a forum for increased cooperation on non-competitive issues among the Island's banks, the association said in its first press release.

The BBA's stated mission is "to be a leading contributor in the development of public policy on the financial services sector and to ensure that the legal and regulatory framework governing banks operates in an efficient, effective and fair manner".

All of the Island's chartered banks and lending/deposit taking institutions are eligible for membership and currently all banks doing business in Bermuda are members.

The Bermuda Monetary Authority, which is responsible for the licensing, supervision and regulation of all financial institutions in Bermuda (including those conducting deposit taking, insurance, investment and trust business), will act as an ex'officio observer of the BBA. The BBA is funded by its members.

Alan Thompson, Butterfield Bank president and CEO has been appointed the first chair of the BBA, an office he will hold for one year. The BBA held its first meeting on October 24 and plans to meet on a monthly basis.

Mr. Thompson said: "Through a wide range of activities, the BBA will focus on promoting an understanding of the banking industry among the public, Government, international bodies, interest groups and the media.

"We aim to provide a forum for dialogue between these groups and the banks."

In its statement the BBA will actively cooperate with other organisations locally and internationally in developing industry standards and conventions to enhance the efficiency and soundness of the financial system. In addition, it will endeavour to encourage compliance with the highest ethical standards and risk management practices within the industry to ensure that Bermuda's reputation as a respected international financial centre is protected.