Bank failure authority set up

Thursday 03 February 2022

An authority responsible for minimising the impact of bank failure in the island has been established.

The Jersey Resolution Authority became an independent legal entity on Monday, with a focus on reducing risk, protecting reputation and considering the best economic interests of the island.

The group will set the strategic direction of work on bank resolution and oversee the exercise of its legal duties and obligations, as well as working with banks and international counterparts to plan for and if necessary administer the resolution of banks.

It will share an indicative timetable of its plans with banks in May.

The new authority's Chair, Mike Mitchell, commented: “The establishment of the JRA is an important step forward for Jersey. 

“Implementing a resolution regime will bring the Island in line with other established regulatory regimes across the world and should ensure that the Island’s economy and taxpayers are protected from the effects of any bank failures in the future.

“We are determined to implement a regime which is robust, true to the spirit as well as the letter of the legislation, and also proportionate to the risks and nature of Jersey’s banking industry.” 

The JRA is accountable to the Minister for External Relations and Financial Services, Senator Ian Gorst.

Pictured: The Minister for External Relations and Financial Services will hold political responsibility for the JRA.

He commented: “The Jersey Resolution Authority will play a central role in mitigating the risks of bank failure and, through its work with international counterparts, will uphold Jersey's position as a cooperative jurisdiction at an international level.

“It protects Islanders and the customers of Jersey banks, and further supports our modern banking centre. 

“I am delighted that the States Assembly has approved the legislation to bring the Jersey Resolution Authority into force and commend the work of everyone involved in its establishment.”