A new government for Bermuda has meant a new approach for the Bank of Bermuda in their bid to get publicly listed on the Nasdaq exchange.

It became clear this week that the Island's largest indigenous company is treading carefully around a government they are uncertain will support their plan.

President and CEO Henry Smith tried to duck questions about the issue at a Monday press conference. But when cornered, corporate diplomacy emerged.

He said, "There is a new government. They have to look at their priorities.

We're waiting for them to do that. They are very busy and we have not wanted to push them on this. The time will come when we can sit down and have a chat with them and hopefully get their support.

"So we think we're making progress, but it is hard to quantify.'' It was hardly the tone he took earlier this year when the PLP shot down a Parliamentary initiative to allow the bank to have its way.

The financial institution has good reason to tread carefully with this new government. They can not afford to get this wrong.

The bank needs to make their presence felt overseas if they have any hope of growing and preserving it as a Bermudian institution.

Increasingly in a world where the large are swallowing the small and getting bigger, the bank needs the capital an overseas listing would bring them to grow from a larger, more secure base.

The longer it remains Island-bound, the longer it loses on the use of one of its key strengths.

Bermuda banks have advantages and growth opportunities their onshore competitors do not. The key is how they use those advantages to compete as a virtual "David'' in a land of giants.

To compete, you need capital. You have to not just be clever, but you have to be big enough. The bank is trying to remedy a future problem -- a problem for which they better have the answer when the time comes.

For all of the expertise the bank has used to operate successfully in onshore and other offshore markets, it will face a serious problem if it is restrained from growing naturally.

Mr. Smith this week seemed concerned not to rock the boat with the new Government. It was the PLP, in an opposition role, that put roadblocks in the path before, blocking in Parliament a bill that petitioned for the institution's wishes.

The PLP opposition must have come as a shock. The bank clearly felt they had properly explained how their plan would benefit Bermudian shareholders, who after all, Mr. Smith is accountable to.

In a letter to shareholders this summer, he and chairman Eldon Trimingham said the Parliamentary vote "reflects badly on Bermuda's reputation as a sophisticated offshore financial centre.'' The letter continued somewhat indelicately: "We are left to conclude that there remains a serious lack of understanding amongst the opponents to this bill about what we were seeking to achieve in the interests of Bermuda and about the extraordinarily competitive business environment in which the bank operates around the world.'' His comments then, were understandably more guarded and tentative this week when he indicated that the issue was still actively being worked on.

He said, "We're still pursuing our 60/40 exemption. We're still pursuing our overseas listings. We are committed to it and we are still working on that.

There are a few things going on.

"There is already legislation that has been tabled in the house that we think will solve the problem.'' Earlier this year, Finance Minister Eugene Cox, then as the Shadow Minister, said the issue should have been tabled in the Legislature as part of Government's legislative agenda.

The PLP had previously argued that the legislation controlling the bank should be written in the body of legislation governing the Bermuda Monetary Authority as well as in the Bermuda Bank Act 1998.'' Premier Jennifer Smith, then as Opposition leader, had stated: "It is the opinion of my Party that the Bank of Bermuda bill should not be considered further until such time as the appropriate regulations are in place.'' HENRY SMITH -- "A few things going on.''