STAFF locally are expected to keep their jobs despite news that the Skipton and Scarborough building societies are to merge in the UK.

Skipton Guernsey Ltd today confirmed it plans to merge with Scarborough Channel Islands Ltd. The two businesses, subject to local board and regulatory approval, will be integrated fully next year and until then customers of each will continue to use their respective offices.

It is envisaged that the enlarged Guernsey bank will be called Skipton Guernsey Ltd. Skipton Guernsey managing director Alan Bougourd (pictured) said no compulsory staff redundancies were anticipated.

‘This is good news for our customers and good news for customers of SCIL. Both our companies are well run, profitable and well capitalised, meaning we both have substantial reserves, which is an essential strength in the current turbulent markets,’ he said.

Following the merger, it is expected that parent company Skipton will be the UK’s fifth-largest building society with assets of over £16bn and more than 860,000 members. ‘Our parent will continue to stand behind us, protecting the deposits of all customers of the merged bank,’ said Mr Bougourd. ‘That fact alone means we will be operating from a position of strength and together with the proposed introduction of a Guernsey depositor compensation scheme similar to that operated in the UK, guaranteeing the first £50,000 of each individual’s savings, we are confident that savers with Skipton Guernsey can look forward to a safe and rewarding future.’