THE Chief Minister released more details this morning about how Islanders’ savings are to be protected.
Senator Frank Walker confirmed that the States would guarantee every penny of Islanders’ savings until a deposit protection scheme was drawn up. It is understood that the banks will fund that scheme. The Chief Minister has now published a list of questions and answers to add flesh to the outline of his pledge announced last week to guarantee Islanders’ savings held locally.
Its publication is an attempt to answer the many questions being asked by concerned savers. And it explains what will happen if a bank goes down before a compensation scheme is in place. Senator Walker and Economic Development Minister Philip Ozouf and other senior ministers and finance industry leaders met this morning to discuss the latest developments here and abroad. The emergency meetings have become a daily event to ensure that the Island keeps pace with the rapidly changing events around the globe.
‘There are two separate proposals,’ the statement released by Senator Walker said. ‘One is an immediate guarantee that subject to the final approval of the States, residents’ deposits will be fully protected. This is protection of the deposits of Jersey residents should they face any loss if a bank with a branch or subsidiary in Jersey is not supported by its home country and is therefore unable to repay deposits in full. It is not expected that this eventuality will ever arise. The other is to take a deposit compensation scheme to the States for agreement, details of which are being developed in consultation with the finance industry and other stakeholders.’
Click here to view the full Q & A from the Chief Minister
Article posted on 8th October, 2008 - 2.59pm
8 Article Comments
All the statement stresses protection is in place subject to S of J approval. When will the States decided whether ot not to approve it and what happens if there is a bank failure prior to approval by the States.
… and what happens if the States do not approve any bailout? We will still be just as stuffed!
I want to know when the deposit protection scheme will come in to force and how much this will cover. This should be at least £50000 like the UK.
And how long will it take the States to approve this protection package? If other things taken to the States for approval are anything to go by, then we’ll all be waiting a long while yet.
Savers in Guernsey have lost deposits, they said the same thing, these governments always weasel out of their responsibilities with some almost invisible small print. My advice is withdraw your savings asap until these banks and their ceo’s can prove that they are acting responsibly.
Although the Ministers have given a “Political Gaurantee” (Subject to States approval)What happens if the States do not approve it? and how long if they do approve it will it take for us to get access to “our” money” and how?
Why cannot the States give approval to the Ministers Gaurantee as a matter of “URGENTCY”
The real question is do we/you trust what the Ministers are saying given their track record?
Landsbanki has now been put into administration.What is the position of Jersey residents who deposited their savings in the Guernsey branch? Are we going to be the only people in the world who are going to lose their savings and be penalised for putting our faith and trust in the Channel Island banking system?
I share Edward’s concerns.
I have all of my family savings in Landsbanki Guernsey and as I see it neither Guernsey or Jersey authorities have the will to compensate if it is necessary.
Jersey currently have only given a verbal guarantee for Jersey residents with savings in Jersey banks and if Guernsey eventually do the same thing then Jersey people will still not be covered. This is a very worrying time for me and my family. Only a matter of weeks ago Landsbanki Guernsey were running large advertisements in the JEP to attract local savers so I assume that there must be many others in the same position.
If the Channel Islands want to be seen as a secure place for investors do they really want to be known as the only jurisdiction to allow local savers to lose their money?
I also have the same problem as Alan - I have all of my family savings in Landsbanki Guernsey, considering that they were advertising regurly in the JEP, there must be a lot of islanders who have accounts with Landsbanki.
Surely the States will come up with something to protect us Jersey people with Guernsey deposits? It is indeed very worrying and as of yet, there has been no announcements from the States in relation to this. I hope we hear something very very soon as it is a worrying time for us.