Jersey to offer Deposit Protection.
In November last year Guernsey introduced a depositor compensation scheme.
Following a vote on 14 July Jersey will now introduce its own similar scheme.
It will provide compensation of up to £50,000 per person, per Jersey banking group, for local and international depositors.
- An interim payment of up to £5,000 will be made within 7 working days and the balance of compensation within 3 months
- The £50,000 limit will apply per person, so a £100,000 deposit held in a joint account by two people would be completely covered
- It will be operated by a board that will be independent from Ministers, the States of Jersey and the Jersey Financial Services Commission.
- The maximum liability of the DCS will be capped at £100 million in any 5 year period, in line with the Guernsey scheme
- The majority of the cost of the compensation will be borne by the Jersey banking industry, with the States making up any shortfall. In most cases, the DCS would be funded solely by levies on the banking industry
- In the unlikely event of a large Jersey bank failing, the States would contribute to the DCS funding, which may be repaid depending on the level of recovery in the bank liquidation.