The Bank of Butterfield is to apply for an exemption to the 60/40 ownership rule, the bank's chief executive officer announced yesterday.

Bank of Butterfield has kept quiet while the Bank of Bermuda has been fighting publicly for two years to get exemption from the ownership rules so it can raise more capital and get a listing on the Nasdaq.

Now the Bank of Butterfield has joined in the public debate after The Royal Gazette published a front page article yesterday in which the Bermuda Stock Exchange's William Woods said other banks would follow in the footsteps of the Bank of Bermuda if it was successful in getting an exemption.

Calum Johnston, the chief executive officer at Bank of Butterfield, said: "The Minister of Finance is aware of Bank of Butterfield's intention to apply for exemption from the 60/40 rule.'' He said he saw the move as one that would push the price of Bank of Butterfield stock up, which has been static at the $15 to $16 mark for months.

The bank considers the shares of the bank to be undervalued.

"While we have no immediate need for additional capital, we believe that exemption from 60/40 is one of the ingredients, but only one of them, needed to enable management to provide existing Bermudian shareholders with the best possible gain in the market price of the shares they hold, a market price that currently does not reflect the true value of the shares.'' Finance Minister Eugene Cox has said the 60/40 ownership rules are under review.

Bank of Butterfield stocks closed up 75 cents at $16.25 yesterday.