Call to set up Bank of Jersey

Wednesday 7th January 2009, 2:56PM GMT.

A FORMER president of the Chamber of Commerce believes that the Island may benefit from setting up a States-owned bank.

Kevin Keen has put the idea forward for a Bank of Jersey to be established, in a letter published in today’s JEP. He believes that the retention of money in the local economy would be a significant benefit, as would additional competition in the sector.

Mr Keen said that it may be the right time to act to reduce the impact of the credit crunch and make it easier for Islanders to get loans for sensible business propositions. And he said that such a bank would reduce the ‘Little Britain-sketch mentality of “computer says no”’ that has become more prevalent as banks cut back on borrowing.

But the idea has received a lukewarm response from a number of leading figures in the finance industry. Some finance professionals believe that such an institution would not be sustainable in such a small market. The managing director of UBS, Hans Baerlocher, said it was a non-starter. ‘More money has been lost in the field of traditional banking than in any institutions involved in derivatives or the like. I just don’t know what the hell crosses his mind,’ he said.

• Picture: Jersey has had a number of locally-owned banks in the past

1
JP

January 7, 2009 at 3:30 pm

A ridiculous idea, i wouldnt put my money in a Bank of jersey if it was the last bank on earth. I mean its bad enough how the elite rule the island can you imagine what it would be like if they had their own bank. It doesnt even bear thinking about.

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2
Stephen Davids

January 7, 2009 at 3:57 pm

I will assume the book that I have just read about the catastrophic decisions made by UBS (Myret Zaki – Inside UBS:The Truth About the Sub Prime Scandal)in moving away from ‘traditional banking’ has escaped the notice of Mr Baerlocher.

It is precisely because of the UBS decision to move away from the ‘traditional markets’ that the bank entered 2009 with its reputation in tatters.

Maybe the wealthy businessmen whose offer of lending to the government has been rejected may be persuaded to support the idea of a local business bank?

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3
James Knight

January 7, 2009 at 4:13 pm

I can imagine that the likes of UBS are not keen on competition. If the ‘Bank of Jersey’ was state owned then any profits would be to Jersey’s benefit.

If the bank only lent out what it had received in deposits, they would also not have the problems that Alliance & Leicester, Barclays, RBS, HBOS, UBS, Northern Rock, Bradford & Bingley, Icesave, and others have all created for themselves.

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4
dave brown

January 7, 2009 at 6:21 pm

was there not some talk of community banking ?
some time ago?
not a bad idea, young people could open a account on starting work, and show the ability
to save and manage money, to obtain a mortgage
when they need one at a low rate.
the c.e.o will not get a fat cat bonus,nor the underdogs. and a corporate do will be a tray of sandwiches and some bucks fizz.

just cover its costs and supply a steady service.

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5
the future

January 7, 2009 at 7:31 pm

To pay for the bridge to France and the wave powered electricity plant, we could put the bank in the new empty offices we will be building and make the old abattoir our Fort Knox. OK spend 500K on a report !!! what is going on here insanity or just lack of news ?

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6
loccallizz

January 8, 2009 at 11:49 am

I don’t think its a good idea to form a bank of Jersey its been done in better times and gone bust people lost money The Walford bank was one and Jersey Trustie Bank had to join Lloyds to survive, the only ones to gain would be the bankers themself and what cover would the savers have. I shall spend my money and enjoy life I’ve worked hard for it not to give others the pleasure to waste and spend it, after all theres no shops to spend it in up there is there

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