ISLANDERS are likely to lose the guarantee of 100 per cent protection for their savings when a Jersey depositor compensation scheme is introduced.
It has been announced that proposals for such a scheme could be introduced as early as the beginning of next year. However, the JEP has learned that a compensation package is likely to replace the existing guarantee which ensures that Islanders’ savings are safe.
As things currently stand, all savings held by Islanders in local bank accounts are 100 per cent protected, subject to States approval. However, this ‘political’ guarantee, which was announced by the Chief Minister, is to be a temporary measure until a depositor compensation scheme can be agreed.
No money deposited in Island banks by non-Islanders is protected at the moment. It is understood that the scheme to be proposed is unlikely to differentiate between local and non-local savers who have money in Island-based accounts.
It is also expected that Jersey will follow the lead of other jurisdictions and cap the amount which a depositor can claim if their bank collapses. At the moment the UK has capped its compensation scheme at £50,000 per account, or £100,000 if it is a joint account.
