announcing it had begun an international search for a new head following the resignation of acting managing director Barry Munholland.

The release added that Mr. Munholland was leaving for family reasons and would be remaining in his post to ensure a smooth transition.

And the statement added that the beleaguered BCB Internet banking service would be up and running by this August -- eight months after it was due to start.

The statement clears up the mystery surrounding Mr. Munholland's resignation, which was announced by the Bermuda Stock Exchange on Wednesday. Sources told The Royal Gazette Mr. Munholland had announced his resignation to staff last week. But it was only on Wednesday this week that his resignation was confirmed to The Royal Gazette . In announcing he was stepping down, Mr.

Munholland said he could not say anything further. The Bank itself also chose to remain silent.

But the statement yesterday said: "He is returning to Canada for family reasons. Mr. Munholland stated that his daughters have reached an age that makes it appropriate for them to complete their education in Canada. He said that his experience at Bermuda Commercial Bank has been positive and that it is with regret that he is leaving Bermuda.'' The statement continued: "An international search has begun and is expected to produce a successor within the next few months.'' It added John Deuss, Chairman and CEO of BCB, said that the Bank is looking for an experienced banking executive who will continue to manage the "positive growth trend that has been established at BCB over the past few years''.

The statement also said that the new managing director would take up responsibility for the e-banking facility.

Yesterday, The Gazette reported that BCB had experienced problems with its Internet banking platform.

In January, the Bank said the system would be ready by Spring. Last week Mr.

Munholland did not say why the system was still not up and running and would not give a new date for the launch.

But yesterday BCB broke its silence on the issue and gave a new date of August -- eight months after it was due to start.

It said: "Bermuda Commercial Bank has been working on an Internet banking facility that will allow clients to interact with the bank via the Internet.

The project has experienced some delays as security systems and other client services are added.'' Currently, the Bank expects to launch the new product by the end of August.''