Scrutiny of compensation defended

Calling Jersey's new depositor compensation scheme to scrutiny was justified, the chairman of the economic scrutiny panel has said.

Deputy Mike Higgins was criticised after calling for the scheme to be examined further.

Some politicians said it effectively delayed the introduction of the law which will protect bank deposits.

But Mr Higgins said the panel was not initially given sufficient time to read all the law documents.

Under the scheme, all savings held by Jersey residents in banks which are licensed by the Financial Services Commission would be covered.

It would compensate local and international depositors for up to £50,000 each, with the maximum payout over five years capped at £100m.