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New compensation scheme 'sends out positive signal'

A new compensation scheme for depositors in the Isle of Man has been approved by Tynwald.

Treasury Minister Anne Craine told members the levy on contributing banks would be matched by the contribution made by the Manx government, with each party paying up to £100 million in a ten year period.

The maximum payout to individual depositors in the event of a bank failing is set at £50,000.

Mrs Craine said the new scheme would provide continued confidence and certainty to depositors, while sending a positive signal to the Island's financial services industry of government's commitment to the banking sector.

There is also a new provision which will enable early payments to be made to depositors, within 28 days of a bank crashing.

At the end of a short debate, Mrs Craine dealt with a couple of issues which had been raised, by Onchan MHK Peter Karran and David Callister, MLC (play audio file):

The vote was overwhelmingly in favour, with only Mr Karran registering his opposition.

Clip 1

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