BANKING groups that have already committed themselves to capital projects in the Island are unlikely to pull the plug because of the credit crunch.

But the current economic climate will likely affect any new decisions about IT or major building investment, says the Jersey Bankers Association. The knock-on effect of the banking crisis has the potential to affect a large number of non-finance-related companies in the Island who provide a wide range of services, from office fit-outs, cleaning, and small works to management training and recruitment.

JBA spokesman Martyn Scriven (pictured) said: ‘Jersey has a financially-based economy, based largely around the banking sector and however secure our part of the business is, it would be foolish to think that what has been going on at Citi, RBS, Lloyds or Barclays will not affect us. Whatever the groups are doing centrally, they are not just going to shut their eyes totally.’

Asked specifically about IT and property investments, Mr Scriven said banks were unlikely to shelve plans already in the pipeline. ‘I would expect these sorts of things to be planned far ahead, so if they are committed, they are committed. But it could affect something on the cusp and might affect a new decision.’