The UK government White Paper on the report accepts a majority of the recommendations of its author, Bank of England chief economist Sir John Vickers, but it implicitly recognises the importance of the role of Jersey, Guernsey and the Isle of Man as providers of deposits to the UK banking system.
As the chief executive of Jersey Finance Ltd, Geoff Cook, points out in the comment section of the organisation’s website, the White Paper includes a section dealing specifically with the Crown Dependencies.
As expected, the UK government will require banks to ring-fence their domestic retail operations from inherently riskier investment operations, but it is suggested that ring-fenced banks will be permitted to operate subsidiaries in non-European Economic Area jurisdictions if there is no risk to taxpayers.
