drafted legislation that could be tabled as early as Friday -- but which won't be considered by legislators until the next session of Parliament.

But the proposed new measures will not amount to a dismantling of the protectionist legislation, currently designed to control the amount of foreign influence over Bermuda corporations.

The proposals deal with one specific change of the 60/40 rules, which Government believes will garner universal acceptance.

The indication comes as a delegation from the Caribbean Financial Action Task Force just left Bermuda last week, after a check on Bermuda's financial institutions and the local regulatory authority.

Meanwhile, at present the 60/40 legislation makes it difficult for certain prudent actions to be taken in the event that a local bank or deposit company faces a crisis of, say, liquidity.

In such circumstances, it may be prudent for the affected institution to attract international capital into the bank to protect shareholders and depositors.

One of the issues to be considered in the bill is empowering the bank's regulators to deviate from 60/40 provisions to allow an outside institution to inject external capital into the hypothetically troubled entity.

Right now, that would be difficult to do with the 60/40 regulations in place.

Finance Minister Grant Gibbons commented: "This would obviously be used only when there was a clear case of crisis, and the regulators sought to protect depositors, the overall financial system -- because the banks are counter parties to one another -- and also to prevent a systematic crisis.

"It would be a last resort. But right now that last resort is blocked, if you would exceed the 40 percent by the Banks Act 1969.'' The bill would not consider a blanket move away from 60/40 for deposit taking institutions, Dr. Gibbons said, but only would deal with the emergency scenario.

The move comes as part of a broader package of required changes to keep Bermuda in line with international standards. Those changes are included in the Business Investment Licensing Act.

Dr. Gibbons added, "I plan to table, before the end of this session, a draft bill which will deal specifically with deposit taking institutions, addressing the broader changes which we see as necessary to bring regulations into compliance with the Basle Committee on Banking Supervision (which has delegates from G-10 countries).

"While we will table that before the end of the session, it is unlikely that we would proceed with it immediately, because we want it considered by those in the industry.

"We would like to get across that this is legislation which is necessary and important. But because it will sit over the summer, it will give people in these institutions and in the broader financial community, a chance to consider these issues, and come back to us if they think it needs to be augmented, modified or whatever else.

"This is important because the way in which jurisdictions are now being considered has changed appreciably in the last couple of years.'' Grant Gibbon "This would obviously be used only when there was a clear case of crisis, and the regulators sought to protect depositors...It would be a last resort.'' -- Finance Minister Grant Gibbons (left).