Page last updated at 14:21 GMT, Wednesday, 8 October 2008 15:21 UK

Saving protection scheme outlined

Some business may also be covered by the deposit protection scheme

All savings held by Jersey residents in banks licensed by the Financial Services Commission will be covered by a protection scheme if it goes ahead.

The States will guarantee money held in accounts if a bank with a branch or subsidiary on the island fails and is unable to repay local deposits in full.

Government reserves and a limited amount of borrowing would be used.

The chief minister said he believed it was unlikely it would be needed. The States still has to approve it.

Corporate entities

Senior politicians began discussions about savings protection last week.

The protection guarantee would cover retail deposits in a Jersey bank licensed by the Jersey Financial Services Commission, Chief Minister Frank Walker said in a statement outlining the proposals.

It would not cover deposits held by corporate entities. However, a person running a business in their own name is likely to be covered, he said.

More work is being carried out on plans to offer compensation for any money not covered by the deposit protection plans before details of that stand-alone scheme are released, Mr Walker said.

A question-and-answer section about the deposit protection scheme has been published on the States' website.


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