lines as a result of a collaboration agreement they have signed with Merrill Lynch Asset Management (MLAM).

BCB will provide direct distribution of MLAM offshore mutual funds, feed deposits directly into MLAM's Dollar Asset Portfolio and offer clients access to separate account management covering the various MLAM managed investment disciplines.

The new deal comes on the heels of a memorandum of understanding BCB signed with State Street Bank and Trust Co. to create a joint service alliance.

Through the alliance, BCB will provide a range of State Street products including custody, administrative, accounting and trustee services to captive insurance companies, mutual funds, personal trusts and general corporate accounts.

The relationship between BCB and MLAM began with a joint venture in 1995. The new agreement incorporates the market experience gained since that time.

Managing director, international Americas for MLAM, Anthony S. Wiseman, said, "Both parties to the relationship have been particularly pleased with the outstanding success of the Dollar Assets Portfolio (Bermuda) Ltd. (DAP), a money market feeder fund.

"The underlying MLAM fund offers the stability and integrity of a $2-billion facility.'' Balances held in DAP can be accessed through BCB Gold, BCB's windows-based electronic banking interface. The daily liquidity and local access to account details have been well received by BCB clients.

The management of the DAP feeder fund by BCB will further facilitate another popular feature with clients, the ability to sweep credit balances from their operating accounts into DAP account, giving clients competitive overnight interest rates.

BCB managing director Peter Roberts said other products which will continue to be offered through the bank are MLAM's offshore family of mutual funds and management by MLAM of separate investment accounts.

He said, "It is anticipated that these facilities will particularly appeal to BCB customers who value the benefit of accessing the world class asset management expertise of Merrill Lynch Asset Management, through Bermuda Commercial Bank as a one stop shop.'' The financial institutions said that the strategic alliance between BCB and MLAM is another positive step in the continuing growth of BCB toward its well-established goal of providing the highest level of low-risk, high integrity banking services in the Bermuda marketplace.

They said jointly that it confirms the ongoing commitment of Merrill Lynch to the Bermuda market and endorses the strength of the relationship formed between BCB and MLAM over the past two years.