SERIOUS moves are being made by the Guernsey Financial Services Commission to meet concerns about the lack of a depositors’ guarantee system.
As the global credit crunch begins to hit individuals closer to home, Guernsey depositors need reassurance their deposits are secure and are entitled to know the progress being made with negotiations. Director-general Peter Neville (pictured) said in the wake of the Northern Rock crisis the commission believes having a deposit-protection scheme in Guernsey would bring considerable benefits.
‘I have been in favour of a deposit protection scheme since I joined the commission but that as a result of discussions with industry and the political authorities it was clear that there was no support for the law changes that would be needed,’ said Mr Neville. ‘I sincerely hope that the changed international climate now prevailing will result in such a scheme being introduced. I still believe that and we are considering what form such a scheme might take.
‘This is being done in the context of a wider review of the regulatory infrastructure for banking supervision in Guernsey.’
The work on that is under way and it will involve consultation with the important stakeholders, particularly the Guernsey banks.
The proposals will also be considered by the relevant political authorities which are the Fiscal and Economic Policy Steering Group and the Commerce and Employment Department.
Publication of the consultation document is expected this summer.
A Policy Council spokesperson said the States was in discussions with the GFSC.
Article posted on 22nd May, 2008 - 2.29pm
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