There were no answers from Landsbanki Guernsey yesterday but its going into administration has underlined calls for a depositor protection scheme in the island. (Picture by Tom Tardif, 0651791)
A SENSE of urgency was evident yesterday, as progress began on a depositors protection scheme for Guernsey.
A technical group chaired by Treasury minister Charles Parkinson will work on a bank-funded one.
‘There is a clear will among States members to develop a depositor-protection scheme as soon as we can, but no appetite for a States-funded option,’ said Deputy Parkinson. ‘I will be seeking to bring all sides together to reach rapid agreement to do what we can to protect people with savings in banks in Guernsey.’
Meetings took place yesterday as Guernsey customers of Landsbanki were left uncertain as to when or even if they would get access to their money with the local bank in administration.
Chief Minister Lyndon Trott said that, notwithstanding yesterday’s events, the first task of the new group was to prepare a timetable for the urgent action needed to deliver a bank-funded scheme.
‘The government of Guernsey is not a lender of last resort like the Bank of England in the UK,’ said Deputy Trott.
‘Our responsibility is to protect the interests of both savers and taxpayers. We remain certain our actions will deliver on both counts.’
Deputy Trott is scheduled to travel to China at the end of the week and it is unclear whether the current situation will change those plans.
Neither he nor Deputy Parkinson would say any more about the financial turmoil than a prepared statement released by the Policy Council yesterday afternoon.
The technical group will include representatives of the banking and insurance industry, the Guernsey Financial Services Commission and St James’ Chambers.
The membership will be finalised this week alongside its terms of reference.
Until a meeting yesterday there was a growing sense of discontent among members at the pace of progress in drawing up a scheme.
One of those pressing for action was Deputy Matt Fallaize.
‘I think today’s events [the failure of Landsbanki] underline the need for a scheme and the States should be ready to meet and approve one as soon as the Policy Council is able to put proposals before us,’ he said.
Article posted on 8th October, 2008 - 11.30am
One Article Comment
This company has been marketing fixed rate products for the past few months. Are we seriously asked to beleive that they had no idea that their institution was in trouble until Monday of this week. Reminds me of XL Tours taking travel bookings up until the minute their company collapsed. Seems rather cynical to me.
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