Isle Of Man Repays 60% To BCCI Depositors

by Jason Gorringe, Tax-News.com, London

15 August 2001

The Isle of Man Financial Supervision Commission has issued the annual report to 31st March 2001 of the Depositors’ Compensation Scheme, which it manages, showing that it paid out nearly £7m to claimants during the year.

The scheme was established 10 years ago in the wake of the collapse of the Bank of Credit and Commerce International (BCCI) and is used to compensate eligible protected deposits if a participating licensed banking institution is deemed to have defaulted.

The report showed that no levies were made on banks, but the liquidators of BCCI made further payments to the FSC during the 12 month period, including a third dividend of 14 cents, totalling more than £11.2 million. Of this sum, £6.9 million was paid to claimants, with the remainder being retained within the scheme.

To date a total of £42.8 million has been received from the liquidators, representing 60 cents on the dollar. Of this, £19.4 million has been paid to claimants. The remaining £23.44 million formed part of the general pool of funds held by the FSC and enabled repayments of £23.47 million to banks — equivalent to 100 per cent of the total levies imposed on them to date.

Deposits with banking institutions in the Isle of Man, as at 31st March 2001, increased by £1.13 billion (4.6%) from 31st December 2000, bringing the total deposit base to £25.82 billion.

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