Many UK and international banks are represented in the Channel Islands. The Islands will accept proposals for new banking subsidiaries or branches from banks that can demonstrate that their presence will be of a certain economic benefit to the Islands. The concept of managed banks was introduced during the late 1980s as a result of the continued interest by international banks in setting up operations in the Channel Islands, together with the increased pressure on staff and resources of the Islands. Managed banks have their affairs administered by another bank acting as its manager and therefore do not require their own premises or staff.
Banks in the Channel Islands are regulated by the relevant Island's protection of depositors legislation under which banking licences are issued. The principal regulations are capital adequacy requirements and the filing of audited annual accounts. Further details are available in KPMG's Banking and Finance in Jersey and KPMG's Banking and Finance in Guernsey.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
For further information contact Jonathan G. Hooley on Tel (indirect line): + 44 (0) 1481 721000, Tel (direct line): +44 (0) 1481 719544, Fax: +44 (0) 1481 722373.