Consultation on phase 1 updates to our bank licensing policy

1    Executive summary

1.1    Overview

1.1.1    We are asking you for your feedback on proposed updates to our Bank Licensing Policy (BLP). The policy explains how we determine whether to approve an application to become a registered person under the Banking Business (Jersey) Law 1991 (BBJL).

1.1.2    The policy also informs how we supervise banks on an ongoing basis, including when assessing proposed takeovers.

1.1.3    In this consultation, we set out phase 1 changes to bring the policy up to date. Phase 2 will look at whether future changes are needed to strengthen Jersey’s appeal to potential new banks. This could include more tailored approaches for lower-risk types of banks.

1.1.4    Phase 2 might also consider matters outside the policy, including legislative changes. For example, current legislation only provides for a single class of bank, which results in a one-size-fits-all approach to regulations and fees.

1.2    What is proposed and why?

1.2.1    Jersey welcomes new and existing banks seeking to operate here. This includes:

• internationally active banks
• firms operating in Jersey already that wish to apply for a banking licence
• those who wish to set up a new bank based here 

1.2.2    We assess each applicant’s business model to ensure alignment with our jurisdiction’s business profile and risk appetite.

1.2.3    We wish to maintain our reputation as a well-regulated jurisdiction that meets international standards of supervision and expect applicants to show commitment to these.

1.2.4    We propose to:

1.2.4.1    remove the top 1,000 (by Tier 1 capital) restriction for applicants that are or will be part of banking groups (we largely retain other elements, including the need for such applicants to be internationally active)

1.2.4.2    add a section on Jersey start-ups, setting out how we would expect them to evidence that risks to depositors are materially addressed

1.2.4.3    remove two specific aspects of our BLP that are not being used – managed banks and business continuity registrations

1.2.4.4    remove material on banking regulation and on the application process (more effectively provided on our website)

1.2.4.5    update the language and remove duplication and restatements of regulatory requirements, including material addressed in our Code of Practice for Deposit-taking Business (Banking Code), instead referring applicants to the relevant regulations

1.2.5    A draft of the proposed BLP is provided as Appendix A.

1.2.6    We also seek feedback on two areas outside of the BLP – letters of comfort and the senior officer position – which impact the application process.

1.3    Who would be affected?

1.3.1    The proposals in this consultation may directly affect those registered under the Banking Law and potential applicants by removing barriers to licensing. They may also increase the provision of banking services in Jersey.

1.4    Invitation to comment

1.4.1    We welcome views from stakeholders on the proposals, including

• the removal of the top 1,000 restriction
• the proposed approach for start-up banks in Jersey
• the removal of the managed bank and business continuity material
• the letter of comfort and senior officer requirements

1.4.2    Submit your response through our online form by 5:00pm on Friday 12 June 2026.

Read our full consultation on phase 1 updates to  our bank licensing policy.