Plans for a scheme to protect the savings of people in Guernsey could be in place by the end of next month.
Treasury Minister Charles Parkinson and a new working party have agreed in principle to introduce a guarantee.
He said he would do everything he could to meet the end of year deadline and said he hoped to bring the matter to the States in November.
Unlike the UK and other EU countries, Guernsey currently has no safeguards in place for islanders' savings.
The current turmoil in the financial markets has created pressure to introduce a scheme locally.
The new group chaired by Mr Parkinson was set up earlier this week to look at introducing the savings guarantee.
Legislation is now being drawn up and licensed banks have been asked to provide more information by the end of next week.
The group will then meet again to start drawing up the firm proposals.