A fresh salvo in the battle of the banks has been fired by would-be banking chief Andre Heyliger.

He claimed existing banks were using up their credit with personal and business customers by being out of touch and out of date.

But yesterday the top man at the Bank of Bermuda denied the claims -- and refused to get into a war of words with the potential newcomer.

Mr. Heyliger, head of a bid to open a new bank on the Island, said: "For more than a generation, the existing banks have borne the brunt of significant community criticism for their conservative stances and their perceived lack of innovation in the local market.

"As well it would appear that our burgeoning offshore industry service requirements has outpaced the level of services currently available to them locally.'' Mr. Heyliger, the man behind the proposed First International Citizen's Bank, was speaking at a meeting of Pembroke Rotary Club in Hamilton on Thursday.

He wants approval for another bank, to join the existing trio of the Bank of Bermuda, the Bank of Butterfield and the Bermuda Commercial Bank.

Mr. Heyliger told the meeting that Bermuda banking had been dominated for a generation by the Banks of Bermuda and Butterfield, which "have been perceived by many as instruments of the elite.'' He added: "In fact, a little less than 35 years ago, the majority of Bermudians could only dream of being little more than cleaners and tellers at either bank.

"Moreover, within the last few years, significant criticism has been levelled from almost every facet of Bermudian society for their perceived lack of responsiveness to customers, community organisations and the public in general.

"Locally, long line-ups, long waits, less than energetic service to clientele and a gap between deposit and loan rates you could fit a cement truck into has generated a noticeable level of discontent.'' Mr. Heyliger claimed that many Bermudians felt excluded from participation in the economic life of the Island by the attitudes of banks and felt a lack of commitment to new small business ideas.

And he said that exempt companies are getting banking services elsewhere, which should be available in Bermuda.

But he added: "We aim to change this feeling about banking and the provision of efficient and effective financial services in Bermuda.'' But last night at least one of the other banks was refusing to rise to the bait.

Bank of Bermuda president Charles Vaughan-Johnson said: "I was very pleased to learn that Mr. Heyliger had used the word `perceived' when addressing how Bermudians feel about the community involvement and support of the banks because I suspect even Mr. Heyliger is aware that the reverse is true and that no other organisations put back into the community the significant amounts contributed by the three banks.

"I really do not want to get into a public debate with Mr. Heyliger. We wish him well in his endeavours and -- should he succeed in his plans -- we look forward to the additional competition provided by another Bermudian-owned bank.'' During the Rotary speech, Mr. Heyliger repeated his ambition to be open for business late next year as "the people's bank of choice for quality and customer-centred financial services.'' The Bank of Butterfield and the Bermuda Commercial Bank did not respond to the attack.