A DEPOSIT-guarantee system could one day exist in Guernsey. The Association of Guernsey Banks is to discuss the possibility with the Guernsey Financial Services Commission.

It could mean that savers’ funds are protected in the event of an institution failing. At the moment, there is no such scheme. AGB committee member Alan Bougourd (pictured) rejected any suggestion that there had been any ‘heel dragging’ from the banking community on the matter.

‘This is a priority matter that we’re giving our utmost attention to,’ he said. ‘We’re aware that it’s an issue which is causing people to question why we don’t have a depositors’ protection scheme in Guernsey.

‘We’ll keep up with the consultation. We’re not holding up the process.’

Mr Bougourd said a consultation paper was due from the GFSC and the AGB was looking forward to it with interest.