Savings protection limit increase

The Isle of Man's Treasury Minister Allan Bell MHK has announced a new level of protection for people with bank accounts on the island.

The compensation guarantee is to rise from £15,000 to £50,000 - in line with the protection offered in the UK.

It is hoped the move will help give assurances to customers during the current global economic crisis.

Mr Bell is set to seek Tynwald's approval to the revised protection limit when it meets later this month.

He said: "I intend to raise the limit of protection for deposits of individuals to a maximum of 100% of £50,000.

"Financial systems around the world have entered uncharted waters, and the Isle of Man cannot expect to be immune from the implications of what is happening elsewhere.

"However, we can take comfort from the diverse nature of our economy - and the underlying strength of our finance sector and banking system - which provides us with a broad and robust platform of business activity.

"We also have a strong and prudent regulatory system, regularly and independently reviewed.

"The steps that the island has taken over the years to achieve an internationally endorsed regulatory system also stand us in good stead."

The new limit will apply to all customers whether they live on the island or not.