NatWest’s parent, RBS, has seen its share price fall sharply. (Picture by Peter Frankland, 0651525)

ISLANDERS should expect things to get worse before they get better, the Guernsey International Business Association has warned.

The warning comes after the dramatic events of yesterday, which saw Landsbanki Guernsey put into the hands of administrators.

Giba vice-chairman Paul Meader said people had to remember that Guernsey was not an island as far as its finance industry was concerned.

‘Tumultuous events are unfolding internationally and it would be naive to think that Guernsey can remain entirely immune from these events. There will be more bad news before this downturn is over and, as a community, we have to be prepared for leaner times over the coming months.

‘However, we are relatively optimistic that Guernsey’s position as a major international finance centre will remain intact and, indeed, may be enhanced by recent events.’