Bank plan to ease credit crunch

A Jersey bank would only lend to local people and businesses

Jersey should think about having its own bank to beat the credit crunch, according to a former president of the Chamber of Commerce.

Kevin Keen said a new bank could help boost the local economy by only accepting deposits from locals and only lending to local people and businesses.

He said Jersey had plenty of banking personnel who could run it.

But Geoff Cook from banking watchdog Jersey Finance said setting up a bank could be complicated and expensive.

Mr Keen insists the introduction of a local bank could work well, by following the example of companies like the Channel Island Co-operative Society and Jersey Mutual Insurance.

But Mr Cook said it would be better if renewed effort was put into the existing local Community Savings and Credit Bank.

It is similar to a credit union, a savings and loans co-operative owned by the members and run by the members for the benefit of the members.