Jersey's Chief Minister and the Ministers for Treasury and Economic Development have announced this week that in the face of the ongoing global financial crisis, there is a need for further assurances for Island residents who are understandably concerned about the safety of the deposits they have placed with banks on the island.
With this in mind, and based upon their confidence in the strength of the banking system in the island, they are, subject to the final approval of the States, giving a guarantee that residents’ deposits will be fully protected.
The confidence of the ministers is based upon the fact that the banks which operate in Jersey are all branches or subsidiaries of parent banks that are in the world's top 500. It is further strengthened by the fact that over 90% of Jersey resident deposits are with banks in the world’s top 100 whose home countries, almost without exception, have pledged to support them.
The Financial Services Commission is approaching the home countries concerned, to seek to ensure that the support offered to banks extends to the Jersey branch or subsidiary.
To cover the possibility that the support of the parent bank and its home country is not forthcoming, the ministers are to recommend to the States that the bank deposits of island residents should be fully protected.
As far as more general depositor protection is concerned, the Economic Development Minister has already announced an urgent, comprehensive review, in which the finance industry and the Financial Services Commission will be fully involved.
The authorities will await the outcome of this review before deciding what kind of protection would best suit Jersey in the long term.
The ministers said that they are determined that both now and in the future, the States will take "whatever steps are necessary" to maintain confidence in Jersey as a sound and safe international finance centre, and to protect the people of Jersey.
The ministers added that Jersey and Guernsey have been working closely together on this issue and will continue to do so.
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