Guernsey's deposit protection scheme changed

Guernsey's States members have approved changes to the island's Deposit Compensation Scheme.

The main change removed the requirement for the scheme to be pre-funded up to £20m.

The commerce and employment minister said the changes would not affect the level of security local depositors had on the island.

Deputy Carla McNulty Bauer said the previous arrangement had put the island at a "competitive disadvantage".

The move brings Guernsey into line with the likes of Jersey and the Isle of Man.

Guernsey's Deposit Compensation Scheme was introduced in November 2008 and guarantees compensation of up to £50,000 per depositor and is payable within three months of a bank failing.