The Economic Development Minister yesterday lodged a proposition for a depositor compensation scheme which would guarantee each Islander’s savings to a value of £50,000.
That means savers would be paid up to £50,000 in compensation if their bank went under. The proposed scheme would be paid for by the banks, but bailed out by the taxpayer in the event of a catastrophic bank collapse.
The statutory scheme would replace a political guarantee announced by then Chief Minister Frank Walker as fear of widespread bank collapses was at its height.
That political scheme guaranteed every penny of savings held by Islanders in Jersey banks.
The scheme being proposed by Senator Alan Maclean is due to be debated by the States on 14 July.
