topped the crucial $2 billion mark.

Although the bank has still not recruited a new managing director to replace outgoing Mr. Richard Francis, it is celebrating the addition of new mutual funds and trust company business.

The bank recently became involved with two new funds, the Indian Opportunities Fund and the Offshore Investment Fund Ltd.

The IOF, which is being incorporated in Bermuda, aims to achieve long-term capital growth by investment in a portfolio of Indian securities.

The OIF, offered to the public under the US Regulation S, is an open-ended fund that aims to grow by investing in North American companies at discounts to the market inbetween 15 percent and 40 percent.

"It's the first time that we have gone through this figure,'' said Mr.

Francis.

"BCB is now second to the Bank of Bermuda in terms of acting as custodian for mutual funds,'' he said.

He attributes the growing popularity of mutual funds to their ability to outperform the average investment. Bermuda is used as a domicile for offshore mutual funds which are marketed to non-US citizens worldwide.

"In the future we aim to go for business that may or may not generate assets that appear on the balance sheet. Typically, a mutual fund could purchase our services in the form of registrars, company secretaries, and company accountants for instance. They may or may not have cash balances in the fund, but they are still earning a good fee for all those peripheral services,'' said Mr. Francis.

"The $2 billion is an important milestone for the bank. The growth in off-balance sheet business reflects the bank's strategy for growth.

"This has been discussed in detail with Mr. John Deuss and is fully supported by our new managing shareholder, the First Curacao International Bank.'' Barclays Bank recently sold its 32 percent stake in BCB to First Curacao International Bank.

Mr. Francis had intended to relinquish his position at the bank by October 10, but the lack of a suitable qualified replacement may prolong his stay.

"Taking into account the timing allowed for hand-over and work permit applications, the appointee should have started today. But because of the multiplicity of skills needed it is difficult to find the right candidate,'' said Mr. Francis.

The perfect candidate should have a knowledge of all services provided by BCB, including investment management, private banking, mutual funds, credit card processing services, retail banking, mortgages and trusts.

"The appointee must have a knowledge of all these areas. However, most (bankers) are either specialists or generalists and if they are generalists, then they do not concentrate on all these areas,'' he said.