Saving compensation plan 'ready'

A proposed bank depositor compensation scheme for Guernsey is ready and carefully designed to safeguard savers' money, the commerce minister says.

The scheme would see deposits protected up to a value of £50,000, with a maximum total fund of £100m to cover claims, Carla McNulty-Bauer said.

The move would be funded by a combination of insurance and a levy on all banks working in the Bailiwick.

The matter is due to come before the States later this month.

The Commerce and Employment Department has brought the matter before the States as a last-minute addition to the agenda.

Minister McNulty-Bauer, said: "This scheme is for small retail depositors, regardless of whether they are local or not local, but is to ensure that people who do invest in the island have a scheme which will cover any bank default up to the compensation level."

Concerns had been raised that the islands' reputation as a finance centre could be tarnished because of the current lack of an appropriate protection scheme.