Bermuda must operate in order to keep its 60/40 ownership exemption.

And he said he has set in place measures which will ensure that the interests of Bermuda continue to be served even if the company is owned in main by foreigners.

He said the banking sector was a vital and strategic component of Bermuda's financial services and infrastructure.

Mr. Cox said: "As Bermuda has few banking institutions it is imperative that any controlling shareholders embrace the national interests that the bank presently serves.

"Other concerns that I have weighed are the nature of the mind and management of the bank, the retention of the head office in Bermuda, the continuation of the employment and training of Bermudians by the bank, the wind-up of strategic operations of the bank and the maintenance of key domestic services.'' In order to make sure the bank does not do any of the things Mr. Cox considers detrimental to Bermuda he has imposed the following conditions on the bank: Adopt a by-law prohibiting shareholder controllers with more than 40 percent of the shares of the bank from exercising the voting rights of those shares in excess of 40 percent without the Minister's permission.

Report to the Minister on shareholders who have ownership control of ten percent, 30 percent and 40 percent.

Report annually to the Minister on the domestic programmes which the bank maintains including loan programmes and community development initiatives.

Report to the Minister on training and employment initiatives.

Consult with the Minister on any strategic plans to change, wind up or re-locate overseas.

Maintain the "Bermudian mind and management'' of the bank. This means that the majority of the board of the Bank must be Bermudian, the head office must remain in Bermuda, and the shareholders' meetings must be held in Bermuda.

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