Jersey: Offshore Business Sectors
Statistics released by the JFSC in March 2011, showed that over the previous nine years, total bank deposits held in Jersey have increased by more than GBP31bn, achieving a peak in 2007, and declining thereafter. At the end of December 2010, there were 45 banks in Jersey, holding deposits of just under GBP161.6bn. The Jersey government statistical report shows that at the end of December 2012, 42 banks held deposits of GBP152.145bn, of which GBP56.126bn were sterling deposits.
In addition to commercial banking, asset management, foreign exchange and securities trading, Jersey banks have recently become involved in a number of large securitisation programmes. The creation of the Channel Islands Stock Exchange has encouraged the development of a larger capital issuance sector. The issuance of SPVs (Special Purpose Vehicles) and Covered Warrants has been a rapidly growing business for Jersey.
Banks can operate as limited companies or branches; or, in response to growing pressure on local resources, as managed units whereby another bank acts as a local manager, without the need for additional premises and staff.
All banks in Jersey are supervised by the Financial Services Commission under the Banking Business (Jersey) Law 1991 and accompanying regulations. An initial fee is payable on registration, and there are continuing annual registration fees.
In November 2009, Jersey’s States Assembly approved legislation to establish a Depositors Compensation Scheme (DCS) in the island with immediate effect. The scheme provides protection of up to GBP50,000 per person, per Jersey banking group, for local and international depositors in line with international standards.