Is now the time for a Bank of Jersey?

Wednesday 7th January 2009, 3:00PM GMT.

From Kevin Keen.
WITH the many undesirable impacts of the credit crunch on Jersey, could now be the time for a Bank of Jersey to be established? I believe it might be.

This new savings bank would only accept deposits from local residents and would lend only to local individuals and businesses (on sound propositions and security). There is obviously plenty of management expertise in the Island to run it; preferably old-fashioned bank managers who have never heard of CDOs, CLOs, and CFDs, etc.

It would also require regulation but again there is plenty of expertise in Jersey to do that as well. The Bank of Jersey could be established on mutual principles, which as we have seen over many years with the Channel Island Co-operative Society and Jersey Mutual Insurance can work very well.

Our new bank would of course require a change in policy from government and probably some support by being one of its first customers. However apart from the obvious advantages such a change would also increase competition (a good thing) and retain money in the local economy (a very good thing).

Given the recent debacle in which bank shareholders have lost a fortune, many hardworking people have already lost or will lose their jobs, where credit is more difficult to obtain and where depositors now receive pitifully low returns; could the new Bank of Jersey do any worse than many of the top 500? It would be quite a challenge.
Vue des Champs,
Clos de la Porte,
St John.

1
JP

January 7, 2009 at 3:36 pm

I have commented on the main news article already but with you mentioning the top 500 banks then by sticking to the rules a Bank of Jersey is not allowed to operate in Jersey. And if you think it should then why can jersey home Loans not take deposits? Perhaps they could also do no worse than the top 500.

Report abuse
2
Roy Bredonchel

January 7, 2009 at 4:08 pm

All i can say is that when Mr Keen says something in the press or other wise i am prepared to read or listen to his statements and so should our own politicians.

I am sure there would be a lot of people that would vote you in if you so wish to stand

Report abuse
3
Spring Heeled Jack

January 7, 2009 at 4:42 pm

Nice one Kevin. Yes, lets employ managers in the financial services arena who have never heard about the very products which have played a part in the recent stock exchange turmoil and banking collapse.

Nothing quite like really sticking your head in the sand.

Report abuse
4
REG

January 8, 2009 at 9:13 am

This is like a US “Thrift” style venture were the funds for mortgages mainly derive from the goverment in one form or another and local community savings. It stands to reason therefore that if it goes “POP” its the tax payers cash (yours and mine)that goes with it (in the relevant costs and losses) and in a double whammy most of their savings (unless covered by a depositors scheme, and guess were the cash comes from?Taxes from you and me, well done you!!). Sounds like a well thought out proposition in a community as large as this.

Report abuse