JFSC public consultation on Phase 1 updates to its Bank Licensing Policy (BLP).

• https://www.jerseyfsc.org/industry/consultations/consultation-on-phase-1-updates-to-our-bank-licensing-policy/

The BLP not only guides initial licensing decisions but also influences ongoing supervision of banks and evaluations of proposed takeovers or changes in control.

Stakeholders interested in Jersey's banking landscape are encouraged to review the proposals and share their perspectives.

The Consultation

• Is a key step in modernising the framework for how the regulator assesses and approves applications for banking licenses under the Banking Business (Jersey) Law 1991 (BBJL).

• Reflects Jersey's balanced approach: preserving rigorous oversight while supporting sustainable growth in banking.  
• Reflects Jersey's ongoing commitment to evolving its regulatory framework in a balanced way, maintaining rigorous standards while supporting sustainable growth in the banking sector.

Why These Changes Now?

Jersey continues to position itself as an attractive, well-regulated international financial centre. The JFSC welcomes applications from:

• Internationally active banks
• Existing Jersey firms seeking to upgrade to full banking status
• New entities looking to establish banks in the jurisdiction

The proposed Phase 1 updates aim to update the policy to reflect current realities, remove outdated elements, and reduce unnecessary barriers, while preserving Jersey's strong reputation for high regulatory standards and alignment with international norms (e.g., those set by bodies such as the Basel Committee and FATF).

A Phase 2 review is planned,

• Phase 2 may explore further enhancements to make Jersey more appealing to new banks.
• This could involve more proportionate, tailored supervision for lower-risk banking models, as well as potential legislative reforms (for instance, moving beyond the current single class of bank, which imposes a uniform regulatory and fee structure).

Key Proposed Changes in Phase 1

The consultation outlines several targeted updates:

• Removal of the "top 1,000 by Tier 1 capital" restriction for applicants that are (or will become) part of banking groups. The requirement for such applicants to be internationally active remains largely in place, but this change opens the door wider to a broader range of group-affiliated banks.
• New section on Jersey-based start-up banks, detailing expectations for how applicants must demonstrate that risks to depositors are materially mitigated.
• Removal of unused provisions, including references to "managed banks" and "business continuity registrations."
• Streamlining the document by deleting sections on general banking regulation and the application process (better covered on the JFSC website) and removing duplicated or restated material from other sources, such as the Code of Practice for Deposit-taking Business (Banking Code). Instead, clear cross-references to relevant regulations will be used.
• Modernised language overall, with reduced duplication.

A draft updated BLP is included as Appendix A in the consultation paper.

The JFSC is also seeking views on two related application-process elements outside the core policy:

• Requirements for letters of comfort
• The senior officer positions

Who Is Affected and How to Respond?

These proposals could benefit existing registered banks, potential new entrants, and the wider Jersey financial services ecosystem by lowering barriers to entry and expanding the range of banking services available in the jurisdiction.

The JFSC invites feedback from all stakeholders, particularly on:

• The removal of the top 1,000 restriction
• The approach to Jersey start-up banks
• The deletion of managed bank and business continuity material
• Letters of comfort and senior officer requirements

Consultation

• Responses should be submitted via the JFSC's online form by 5:00 pm on Friday, June 12, 2026.
• The full consultation document is available on the JFSC website. Please read the full consultation on the phase 1 updates to our bank licensing policy.
• Main JFSC Consultations Page (lists the consultation with dates): https://www.jerseyfsc.org/industry/consultations (Direct entry: Consultation on phase 1 updates to our bank licensing policy – Issued 12 March 2026, closes 12 June 2026)
• JFSC Homepage News Item (announcement of launch): https://www.jerseyfsc.org/news-and-events/consultation-launched-on-updates-to-our-bank-licensing-policy/
• For the full consultation paper, draft policy (Appendix A), and online response form, visit the JFSC consultations page linked above or search directly on jerseyfsc.org for "bank licensing policy consultation 2026."

Web Sources (for easy copying into Word)

Here are the key official and related sources confirming the consultation launch and details (as of March 12, 2026):

1. Main JFSC Consultations Page (lists the consultation with dates): https://www.jerseyfsc.org/industry/consultations (Direct entry: Consultation on phase 1 updates to our bank licensing policy – Issued 12 March 2026, closes 12 June 2026)
2. JFSC Homepage News Item (announcement of launch): https://www.jerseyfsc.org/news-and-events/consultation-launched-on-updates-to-our-bank-licensing-policy/
3. Watch: Monthly Update - March 2026 (video and text preview mentioning the upcoming consultation publication): https://www.jerseyfsc.org/news-and-events/watch-monthly-update-march-2026
4. Older / Current Bank Licensing Policy (for context on what is being updated): https://www.jerseyfsc.org/industry/guidance-and-policy/licensing-policy-for-deposit-taking-business-that-requires-registration
5. https://www.jerseyfsc.org/industry/consultations/consultation-on-phase-1-updates-to-our-bank-licensing-policy/