Banking

Delivering innovative banking services in a stable jurisdiction, Jersey has been attracting deposits and investments from institutions and private clients across the world for more than 50 years.

Jersey has an evolving and increasingly flexible regulatory approach designed to attract good quality banking business to the island to enhance its existing array of providers.

Bank ownership structures and business propositions are changing and the regulatory regime needs to be suitably adaptable to cater for this, which the Jersey Financial Services Commission (JFSC) fully appreciates in its current licensing approach.

Jersey is therefore aiming to make it increasingly possible, in line with this changing regulatory philosophy, to cater for niche and digital banking providers.

For banks or advisors interested in exploring the opportunities in Jersey they should contact: richard.nunn@jerseyfinance.je

Jersey’s banking organisations work alongside trust and company administrators, investment managers, stockbrokers, advisers, a range of fund managers and administrators, the ‘Big Four’ and other leading international accountancy firms, together with some of the biggest names in the offshore legal world.

Future of Banking

With the Island’s banks under continuing pressure from low interest rates, we launched the Future of Banking Review in 2016 to analyse the challenges facing the Jersey banking sector. The project involved many stakeholders including banks, professional firms, Digital Jersey, Government and the regulator, participating through interviews and workshops. It analysed the challenges resulting from economic changes, regulatory developments, cost pressures and disruptive technologies. Three were seen as particularly critical:

  • The continuing consolidation of operations across IFCs by banking groups – driven by factors such as cost-cutting, increasing regulatory costs and a flight to quality.
  • Digitisation and automation of services – creating further pressures on banks’ offshore operations.
  • De-leveraging of the global banking system – restricting the long-term profitability and growth of Jersey’s banks by reducing the value and purpose of their traditional deposit-taking business model.

Given these challenges, the review identified three strategic priorities: to ensure that Jersey emerges as a winner from the consolidation of banks; to increase the value realised from its banks’ deposit books through new banking activities; and to maintain employment and competitiveness through digitisation and innovation in banking and the evolution of new business models.

These objectives will be developed into a focused action plan which will require the involvement and close cooperation of many stakeholders across the whole financial services industry. We will be working in partnership with Digital Jersey to explore exciting initiatives that can benefit Jersey’s financial services industry including banking sector.

Read the Future of Banking Report
 

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A stable banking model

Jersey’s banking model is diversified, does not rely on wholesale funding and is inherently stable attracting capital from around the world.   However, unlike other centres, this money does not go into the Jersey economy, which is service based, but goes into the treasury function of major banks in London, New York, Paris, Frankfurt and other centres where it is put to work. This creates both a valuable and a safe model for international banking.

 

Corporate and Institutional Banking

Jersey has become a leading finance centre in the provision of corporate banking services for multinational organisations, financial institutions, companies and firms with cross border interests and activities. For many corporate treasurers, institutional bankers and treasury specialists, fund promoters, brokers and other corporate financiers, Jersey represents an extension of the City of London.

 

Banking Services for International Investors

Jersey is home to global banking organisations from the UK, Europe, North America, South Africa, Asia, and the Middle East. Many are listed in the top 20 by assets globally and deliver expertise in wealth management and financial planning.

 

Banking and the Funds Sector

Jersey’s banking sector has been able to provide services to support the fast-growing alternative investment funds industry, in particular the real estate, private equity and hedge fund markets, offering, for example, loan facilities to acquire assets and bridging facilities where appropriate.

 

Personal Banking – Including Expatriates and Professionals Working Overseas

Offshore banking is an important consideration in assisting with wealth creation and preservation. The range of banking services provided from Jersey is extensive, including multi-currency banking, offshore mortgages, investment solutions and more.

 

Key Facts
  • Jersey's banking sector hold an average Tier 1 Capital ratio that is 50% higher than Basel III requirements
 
  • Jersey's banking model is stable and diversified, and Jersey has received AA- credit rating from Standard & Poor's
 
  • In September 2014, Jersey introduced a revised Licencing Policy to reflect new realities and provides a workable and flexible framework for a wide variety of banks to operate within the strong regulatory framework to which the island remains committed
 
  • There are 29 bank branches and subsidiaries located in Jersey and they include nearly half of the top 25 banks in the world, by Tier 1 Capital