A SCHEME to guarantee savers' money up to the first £35,000 is being proposed by five politicians.
The proposal, by MHKs David Quirk, Tim Crookall, Bill Malarkey, Graham Cregeen and Juan Watterson would bring the Island in line with the UK, but the guarantee would only be for individual or corporate local investors.
If the current move in the UK to raise the limit to £50,000 were accepted, the MHKs say the Island should also follow suit.
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Mr Watterson said: 'The Island's deposit scheme was originally established in 1991 and has not been increased in that time.
'We believe the deposit level should be index-linked in line with wages.'
He said he was aware the proposal would create a two-tier system of protection.
'But in an international financial services centre such as ours there are two very different risk models in play,' he said.
Jersey offered no protection, whereas Guernsey was looking at different schemes, and the Isle of Man needed to remain competitive to win international business, he pointed out.
'Any competitive advantage the Island has through its depositors' compensation scheme will still be two-way attracting banks on the one hand or depositors on the other,' he said.
All five MHKs agree no public money should be put at risk to protect bank deposits. Their proposals have been put in a letter circulated to Chief Minister Tony Brown, the Treasury and the Financial Services Commission.
Mr Watterson said: 'It is no-longer sustainable for the Treasury Minister to sit on his hands and say it is under constant review. We call on him to agree with this initiative to allay concerns of Manx depositors.
>> Your Shout: Financial crisis and IoMWHAT DO YOU THINK?Send your comments to newsviews@newsiom.co.imYOUR COMMENTSGood on the 5 MHKs. Positive action in a time of uncertainty which will bring reassurance to small savers and restore confidence.
PAULWill the Island follow Britain if they in turn follow Germany and Ireland to cover all personal savings?
ADRIANThe five MHKs concerned need our heartfelt thanks for their efforts.
However I can not see this Government bothering with the little man. In August Penny Creighton, Chief Executive of Age Concern was attacked by Treasury Minister Bell and Chief Minister Brown for warning of the possible death of people following the rise in heating prices. All our deepest sympathies go out to the relatives and friends of Mr Prescott whose death from hypothermia is reported today.
PAUL CHAMBERS, Chairman, IOMPAOn Friday Jersey announced a 100% guarantee of all deposits held by Jersey residents in Jersey registered banks. Can can't Tony Brown do the same?
PHILI have money invested with Anglo Irish Bank. IOM. And Bank of Scotland. IOM.. Since these banks parent companies are Anglo Irish bank in Ireland, and .HBOS in UK are these funds covered by the Irish government and the British government savings garantee respectivly ?
TMI totally agree with Juan Watterson that the IOM Government need to come out with a definitive statement immediately as to exactly what they are going to guarantee with regards to the personal savings of IOM residents, otherwise I will be very tempted to transfer my savings elsewhere. The current limit of £15,000 is no longer acceptable.
HSThe Government here must match other jurisdictions or risk a mass withdrawal of private and commercial funds. We have already withdrawn some of our deposits here and wait a short while to see if this Government will protect us or not.
AM