09 March 2026
The Jersey Bank Depositors Compensation Scheme is being enhanced to make it easier for customers to access compensation of up to £50,000 in the unlikely event of their bank failing.
Currently, if a Jersey bank were to fail, depositors would submit a form to the Jersey Bank Depositors Board and might wait up to three months to recover their money.
A Commencement Order has been signed by Deputy Ian Gorst, the Minister for External Relations with responsibility for financial services, to bring the following changes into effect from 1 April 2026:
- the target for compensation payments will be reduced to seven working days
- payments will be automatic for most eligible depositors
- removal of the £100 million cap on the total amount of compensation that can be paid from the scheme in any five years
From the same date, administration of the scheme will transfer from the Jersey Bank Depositors Compensation Board to the Jersey Resolution Authority, JRA.
Deputy Gorst said: “Jersey has a strong and stable banking sector, and it is extremely unlikely that a failure would occur. However, like all jurisdictions, it is prudent for Jersey to review and update our responses to ensure consumers are protected.
“Modernising the compensation scheme strengthens consumer protection and maintains Jersey’s competitive financial services sector, and these improvements bring the scheme largely in line with international standards and make its administration more efficient.
“I thank the Jersey Bank Depositors Compensation Board for their effective stewardship over the scheme, which has been in place since 2009. Once the transfer of responsibility has completed, we will begin a review of the scope of the scheme, including whether the £50,000 per person compensation limit remains appropriate, with any decision expected in 2027.”
The JRA was established in 2022 to prepare for and manage bank failures and, from 1 April, it will be renamed the Jersey Resolution and Depositors Compensation Authority, JRDCA, to reflect its expanded responsibility.
The authority’s Head, Martin Edwards, said “The Jersey Bank Depositors Compensation Scheme forms a key part of the measures designed to safeguard depositors and maintain confidence in our financial system. By removing the need for individuals to apply for compensation, these enhancements enable eligible depositors to receive up to £50,000 quickly, reducing uncertainty and financial stress during what could be a challenging time.”
gov.je