Jersey has established a bank failure authority in order to improve its international reputation.

The new Jersey Resolution Authority's (JRA) goal is reducing the impact of bank failure on the Island and ensuring the safety of public funds.

The Jersey Financial Services Commission announced on February 1 that the JRA had become an independent legal entity on Monday, January 31.

The regulator stated that it will play a critical role in "upholding Jersey's status as a leading international finance center" by reducing the risk of financial loss due to bank failure, protecting and enhancing Jersey's reputation and integrity, and considering Jersey's best economic interests.

The JRA will direct the strategic direction of work on bank resolution, supervise the execution of its legal duties and obligations, and assist in raising Jersey's international profile among international counterparts.

The JRA will collaborate with banks and international counterparts to plan for and, if necessary, manage bank resolution. In May, it will provide banks with an outline of its plans.

The JRA's Chair, Mike Mitchell, stated: ""The establishment of the JRA is an important step forward for Jersey. Implementing a resolution regime will bring the Island in line with other established regulatory regimes across the world and should ensure that the Island's economy and taxpayers are protected from the effects of any bank failures in the future."

" We are determined to implement a regime which is robust, true to the spirit as well as the letter of the legislation, and also proportionate to the risks and nature of Jersey's banking industry."

The JRA was created by the Bank (Recovery and Resolution) (Jersey) Law 2017 and reports to Ian Gorst, the Minister for External Relations and Financial Services.

"TThe Jersey Resolution Authority will play a central role in mitigating the risks of bank failure," Gorst said, "and, through its world counterparts, will uphold Jersey's position as a cooperative jurisdiction at an international level."

"It protects Islanders and the customers of Jersey banks, and further supports our modern banking center. I am delighted that the States Assembly has approved the legislation to bring the Jersey Resolution Authority into force and commend the work of everyone involved in its establishment. "

Katherine Hitchins, an independent director, Monique O'Keefe, deputy chair of the Jersey Financial Services Commission (JFSC), and Jill Britton, interim director-general of the JFSC, join Mike Mitchell on the JRA Board. Martin Edwards has been named the Head of JRA.

By fLEXI tEAM