POLICY COUNCIL members yesterday ruled out a States-funded deposit protection scheme for Guernsey.
Jersey politicians will be asked to approve one but any such system here would have to be funded by the banking industry. There is still no indication as to what the level of protection would be and when it is likely to be introduced.
Speculation had been mounting that the two islands would work on a joint scheme, but that was quashed by yesterday’s announcement and the revelation that Jersey’s States was to be asked to approve a proposition that would guarantee every penny of residents’ savings.
Instead, the Policy Council, following an unscheduled meeting yesterday morning, has agreed to a ‘measured course of action’, which includes meeting all States members on Monday.
‘We, the Policy Council, have listened very carefully to a range of advice we have received and we have decided to put our full weight behind the speedy introduction of a scheme to protect depositors in Guernsey,’ said Chief Minister Lyndon Trott (pictured). ‘Jersey has decided on a slightly different course of action and it’s not for us to comment on the decision taken by the Jersey authorities.’
Article posted on 4th October, 2008 - 9.30am
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3 Article Comments
What on earth are the States up to, are they happy for Guernsey to fall behind everyone else with regards to a depositers protection Scheme.
Jersey have led the way and have offered a scheme to residents, why are Guernsey not doing the same. All small residential investors should receive some form of protection for their savings,at least up to the £35,000 previously limited in the UK, or is it that the States do not have confidence in the Banking system to offer such protection.
Let us hope that we do not have a Company in Guernsey go to the wall and small investors lose their savings that in itself will lead to the collapse of confidence within the finance circles and could well spell the end of the Island as a finance centre.
I totally agree with all your comments BeanJar
It seems everyone in authority has their fingers crossed hoping this problem will just blow over.
At this time there is nothing to support this, and in fact according to the evidence things could get much worse.
This really is a wake up call for the States and Financial Services to make tough decisions, otherwise we could as an island be going down the proverbial plug hole, causing irreparable damage to life as we know it.
But why should the banks fun d this?
But why should the taxpayer fund this?
Who will fund this? in reality Guernsey makes its finance money from mega rich / institutions. will £ 35,000 help these? no! Placing ou money in a bank is a risk! thik about risk / reward. you banked with northern rock you got 7% interest but you were at higher risk of loosing your money then if you were with Lloyds on 4%.
Does no one understand that with a higher return you get a higher risk.
Want your money protected? invest in national savings!!
In too much debt? tough luck. you made a very stupid decision when you over borrowed.
On one hand you want the freedom to make your own choices but on the other you want the net to catch you when it is the wrong one!!