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Review: Bank Depositors Compensation Review

Committee/Panel: Economic and International Affairs Panel
Launch Date: 28 July 2025
Review Status: Review concluded Submissions Deadline: 15 August 2025

About

The   Draft Bank (Recovery and Resolution) (Jersey) Amendment Law 202- [P.42/2025] (the draft Law) was lodged 27th May 2025 by the Minister for External Relations (the Minister) and the principals of the draft Law were debated 9th July 2025.

Primarily the draft Law  seeks to transfer the functions of the Jersey Bank Depositor Compensation Board (the “DCS Board”), currently established under the Banking Business (Depositors Compensation) (Jersey) Regulations 2009 (the “2009 Regulations”), to the Jersey Resolution Authority (the “JRA”) through amendments to the Bank (Recovery and Resolution) (Jersey) Law 2017 (the “2017 Law”).

The Panel presented comments [P.42/2025 Com.] on 4th July 2025 accepting the rationale for the transfer of the functions of the Jersey Bank Depositor Compensation Board to the Jersey Resolution Authority and of the provisions in the proposed Draft Law to establish this.

However, the Panel was disappointed that the opportunity to review and update the limit of compensation, set at £50,000 had not been undertaken during the formation of the draft Law and accordingly the Panel referred the Regulations for Scrutiny under Standing Order 72 to allow for further consideration to take place. It is anticipated that the draft Law will be returned for debate at the States meeting of 30th September 2025.

The Panel presented its second comments on 25th September 2025. These comments can be found here.
 

Terms of reference

  1. To consider the continuance of the £50,000 bank depositors’ compensation limit proposed in the Draft Bank (Recovery and Resolution) (Jersey) Amendment Law 202-, and the level at which compensation is currently set.
 
  1. To explore the desirability, viability and potential impacts of altering the £50,000 limit set in the bank depositors’ compensation, including effects upon the Island’s competitiveness and the funding of the Bank Depositors Compensation Scheme