Finance sector avoiding 'crunch'

Jersey is avoiding the global "credit crunch" because its finance industry is mainly based on saving and investments rather than lending, an expert says.

The "crunch" began last year when banks in the US started hoarding cash and the supply of loans evaporated.

There have also been indications it is starting to hit the UK.

But Geoff Cooke from Jersey Finance said Jersey's finance industry is diverse enough to avoid these problems.

The Confederation of British Industry (CBI) has said business levels at UK financial services firms fell at their fastest rate in almost 17 years during the last three months of 2007.