Bermuda International Business Association has questioned the subjectivity of a well respected international report which has placed the Island in a category marked for offshore jurisdictions in need of improved government supervision and oversight.

BIBA has joined its voice to the protest over the report by Government after the Island was placed in the grade II category by the Financial Stability Forum.

The ranking has placed Bermuda behind some of the Island's key competitors such as Dublin, Hong Kong and Jersey.

In a written statement BIBA said it was: "Compelled to question the methodology and potential level of subjectivity inherent in the Financial Stability Forum's survey.'' Last week Finance Minister Eugene Cox insisted in the House of Assembly that Bermuda did not deserve the grade II rating and has asked for an explanation about the situation from the organisation which was set up last year by the Group of Seven (G7) industrial nations.

Bermuda was listed second of three groups -- those which fell short in business practices and regulatory systems.

Bermuda has been ranked alongside of Gibraltar, Barbados, Bahrain, Malta and Monaco.

The report said the second group should be looked at by the International Monetary Fund as "highest priority'' and that the countries should undertake an "assessment process.'' Bahamas is among about 20 centres in the third and lowest rung, which also includes Bermuda's key competitors Caymans, British Virgin Isles, Aruba and Netherlands Antilles.

Some of these offshore centres fear that the big countries conducting the ratings are operating partly out of fear of competition from smaller banking centres.

The Stability Forum has denied any suggestions that politics has played a part in the ranking.

The report covers about 40 offshore centres, and already a group of Caribbean nations have joined forces to fight the unfavourable ratings they received at the hands of the forum.

Last week Mr. Cox said: "The publication of the listing... was based on a survey process that has been challenged by the Offshore Group of Banking Supervisors, due in part, to the largely subjective nature of the survey process.'' In the statement issued yesterday, BIBA said: "It is with perplexed concern that BIBA and our member companies greet the result of the "survey'' by the Financial Stability Forum announcing that Bermuda has been placed on a list of offshore financial centres allegedly in need of improved government supervision and oversight.'' It added that Bermuda businesses are subject to some of the most stringent banking insurance and financial services regulations world wide. The statement continued: "While businesses enjoy the full support of the Bermuda Government, we must -- and willingly do -- answer to regulators who adhere to the highest business standards governing disclosure, transparency and other issues key to Bermuda's reputation as a world class, international business centre.'' BIBA said that it and its members were willing to participate in future discussions with the Financial Stability Forum.

The forum was set up by the G7 nations, Britain, Canada, France, Germany, Italy, Japan and the United States to make a global financing more stable.

Bermuda doesn't deserve grade II rating: Finance Minister Eugene Cox.