The Channel Island economy is based on international financial services, agriculture, and tourism. The finance sector accounts for about 60% of the island's output. One of the worlds major tax havens offering all types of offshore financial services.

Request information on opening a Jersey Bank Account

Statistics released by the JFSC in April 2010 showed that over the previous nine years, total bank deposits held in Jersey have increased by more than GBP50bn, achieving a peak in 2007, and declining thereafter. The number of bank licences has declined by 26, mainly due to mergers. At the end of September 2009, there were 47 banks in Jersey, holding deposits of GBP170.6bn.

In 2008, the annual profit of the banking sub-sector was GBP1.16bn, a fall of 3% (about GBP40m) on 2007. This decrease represented the first fall in profits for this sub-sector for four years.

In addition to commercial banking, asset management, foreign exchange and securities trading, Jersey banks have recently become involved in a number of large securitisation programmes. The creation of the Channel Islands Stock Exchange has encouraged the development of a larger capital issuance sector. The issuance of SPVs (Special Purpose Vehicles) and Covered Warrants has been a rapidly growing business for Jersey.

Banks can operate as limited companies or branches; or, in response to growing pressure on local resources, as managed units whereby another bank acts as a local manager, without the need for additional premises and staff.

All banks in Jersey are supervised by the Financial Services Commission under the Banking Business (Jersey) Law 1991 and accompanying regulations. An initial fee is payable on registration, and there are continuing annual registration fees.

In November 2009, Jersey’s States Assembly approved legislation to establish a Depositors Compensation Scheme (DCS) in the island with immediate effect. The scheme provides protection of up to GBP50,000 per person, per Jersey banking group, for local and international depositors in line with international standards.