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P.84/2009 Loan Agreement: Jersey Bank Depositors Compensation Board

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

  • demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision

  • providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made 16 December 2010 regarding: P.84/2009 Loan Agreement: Jersey Bank Depositors Compensation Board.

Decision Reference:    MD-E-2010-0207

Decision Summary Title :

Loan Agreement: Jersey Bank Depositors Compensation Board

 

Date of Decision Summary:

December 2010

Decision Summary Author:

 

Director, Finance Industry Development

 

Decision Summary:

Public or Exempt?

 

Public

Type of Report:

Oral or Written?

Written

 

 

Person Giving

Oral Report:

n/a

Written Report

Title :

Loan Agreement: Jersey Bank Depositors Compensation Board

 

Date of Written Report:

December 2010

Written Report Author:

Director, Finance Industry Development

 

Written Report :

Public or Exempt?

 

Public

Subject:  

 

Loan Agreement: Jersey Bank Depositors Compensation Board (“the Board”).

Decision(s):

 

The Minister agreed to sign a Loan Agreement (attached as SD1) and three associated Security Interest Agreements (attached as SD2-4) (collectively “the Agreements”) on behalf of the Board.

 

Reason(s) for Decision:

 

In order for the Board to be able to pay compensation quickly to depositors, the States agreed in P84/2009 that provision should be made for the States to lend liquidity funding from the Strategic Reserve to the Board in the unlikely event of a Jersey bank failure.  The Agreements provide the legal framework for such lending.   

 

The Minister is carrying out the functions of the Board until such time as the Board assume their functions under the Banking Business (Depositors Compensation) (Jersey) Regulations 2009.  The Minister will therefore sign the Agreements on behalf of the Board.

 

Resource Implications:

 

The Minister is signing the Agreements for and on behalf of the Board.  The financial and manpower implications for the States of Jersey are set out in the corresponding Ministerial Decision and report by the Treasury & Resources Department, which received independent legal advice in relation to the Agreements. 

Action required:

 

The Minister to sign the Agreements on behalf of the Board.

 

Signature:

 

 

Position:

 

Economic Development Minister

 

Date Signed:

 

 

Date of Decision (If different from Date Signed):

 

 

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