JERSEY’S bank watchdog has taken control of the Island’s deposit protection scheme in a “pivotal” expansion of responsibilities.
The Jersey Resolution Authority formally assumed responsibility for the Jersey Bank Depositors Compensation Scheme from 1 April 2026.
The organisation’s 2025 annual report revealed that “significant time and resources” had been invested to prepare for the transfer.
This included the development of a new payout platform, updates to operational manuals, and engagement with the government on the legislative changes required to enable the move.
The authority said it strengthened its internal capacity with additional staff and worked closely with outsourced providers to build systems to support depositor compensation payments.
A new website and updated disclosure standards were also being prepared ahead of the handover.
But the transfer of the compensation scheme was still rated “high” risk, with “lots still to complete” even late into 2025.
The report also revealed that the Jersey Resolution Authority recorded a £17,252 deficit in 2025, a reversal from the previous year’s £52,948 surplus.
The shortfall was in line with expectations, reflecting a decision not to levy banks for certain non-recurring project costs linked to the Jersey Bank Depositors Compensation Scheme transition.
Accumulated reserves stood at £135,618 at the end of the year, remaining above the Authority’s minimum reserve level.
The report noted that reserves are expected to be bolstered in 2026 through a transfer of funds from the JDCS Board following its dissolution.
The authority emphasised that Jersey’s banking sector remains stable, with 94.7% of deposits held with banks that are part of major international groups, meaning that most Jersey deposits “continue to benefit from well‑established group resolution strategies”.
Priorities for 2026 outlined in the report included completing the transfer of Jersey Bank Depositors Compensation Scheme functions, finalising outstanding policy work, and beginning a review of the deposit compensation scheme, with recommendations expected to be provided to the government in 2027.
