BANKING

In Guernsey banking, business includes a number of activities comprising deposit-taking and corresponding banking, global safe custody, securities processing, deposit management, fund administration, trustee or custodial services, asset management and administration of other banks.

Financial services businesses including that of banking, in Guernsey are supervised by the Guernsey Financial Services Commission established under the Financial Services Commission (Bailiwick of Guernsey) Law, 1987 and which commenced operations on 1^st February 1988.

The banking division of the Commission is responsible for the administration and regulation of those persons in the Bailiwick of Guernsey carrying on a deposit-taking business in accordance with the provisions of the Banking Supervision (Bailiwick of Guernsey) Law, 1994 under which banks (or deposit-takers) are licensed.

A person wishing to obtain a banking licence must apply in that respect to the Guernsey Financial Services Commission. Any new bank is expected by the Commission to be of high reputation and standing, with an established track record, adding to Guernsey’s reputation as a finance centre. The Commission indicates that every proposal is considered on its own merits.

Banks may be established in Guernsey as either a stand alone bank or an administered bank. An administered bank, also known as a managed bank, is treated as if it had a stand alone presence on the island. It differs in that it has few of its own staff with day to day administration being carried by another entity.

With regard to stand alone banks, the Commission has indicated that it is unlikely that a bank, other than a very substantial international bank which would widen or strengthen the geographical distribution of banks already licensed, would be permitted a stand alone presence.

The role of the Commission extends beyond however the licensing of banks at the incorporation or establishment stage. The Commission is responsible for the continuing supervision of banks under the law.

Further information regarding the establishment of banks in Guernsey may be obtained by contacting F Haskins & Co using the telephone number, address or e-mail address stated on this website.