Bank failure authority signs MoU

Thursday 09 June 2022

A new body set up to minimise the risk of financial loss due to bank failure has signed its first MoU with the financial regulator, and set out a strategy to carry it to 2023.

The Jersey Resolution Authority (JRA), which was set up at the end of January this year, says its focus will be on:

• “developing and implementing its approach to bank resolution; 
• building its understanding of the activities conducted by Jersey banks and determining those functions that are critical to Jersey’s economy; and 
• “understanding the impact of Group Resolution Plans on the activities of Jersey banks.”

While independent from the Jersey Financial Services Commission, it has pledged to work closely with the JFSC to fulfil its goals and recently signed a Memorandum of Understanding detailing how the pair will work together to reduce the risk of financial loss due to bank failure and protect and enhancing the reputation and integrity of Jersey, with the island’s “best economic interests” in mind.

“Whilst we’ve set ourselves ambitious targets to implement Jersey’s Bank Resolution Regime, we appreciate that we are at the start of a journey, and we anticipate that some aspects will take several years to implement fully,” JRA Chair Mike Mitchell said.

“I am also delighted that we’ve been able to quickly agree a Memorandum of Understanding with the JFSC. The JFSC has been extremely supportive of the JRA to date, for which we are most grateful; an open and cooperative relationship with the JFSC is key to our ability to deliver on the JRA’s strategic goals going forward.” 

Jill Britton, Director General of the JFSC added: “We have worked closely with the JRA since its establishment and the signing of this MoU further develops the open and cooperative working relationship between our two organisations.”