Log In

Reset Password
BERMUDA | RSS PODCAST

Deposit Insurance bill approved

The Senate yesterday approved plans for an insurance scheme providing a safety net for people if a bank fails.

The One Bermuda Alliance gave its support to the Deposit Insurance Act, which gives insurance coverage to depositors in banks and credit unions in the light of global financial turmoil.

OBA Senate leader Michael Dunkley noted the scheme would be funded by its members and said it would have an impact on the rate of return enjoyed by customers. Senator Dunkley said the legislation, which creates Bermuda Deposit Insurance Corporation to administer the scheme, is a good start, but a lot more needs to be done to ensure it is successful.

Progressive Labour Party Senator Jonathan Smith said the legislation, which brings a maximum threshold for compensation of $25,000, gives important protection to young people as they start to make savings, and to older people who are reaching the end of their savings.

Junior Finance Minister David Burt, who presented the bill to the Upper House, said the target date of the scheme’s launch is April 1, 2012.

You must be Registered or to post comment or to vote.

Published August 04, 2011 at 2:00 am (Updated August 04, 2011 at 9:51 am)

Deposit Insurance bill approved

What you
Need to
Know
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon