A bank based in the Isle of Man could have been saved, an investment company says.

Yesterday we reported that Permanent Bank, based on Prospect Hill, Douglas, had announced that it was going to shut up shop later this year.

Today’s Manx Independent reports more.

But today Select Finance Investments Limited, which was established last year by financial services entrepreneur Geoff Miller, said that it had approached the owners of Permanent Bank to express an interest in buying it with a view to growing it into an offshore bank with a specific focus on the Crown Dependencies.

’To find out on Wednesday that a decision has been made to close the bank was somewhat of a surprise, as well as a disappointment,’ said Mr Miller.

’Whilst we appreciate that we are a relatively new business, the team has many decades of financial services experience and our plans and approach have been positively received by both the Isle of Man Government and investors.

’The Isle of Man banking industry has been dealt blow after blow and here was a potential opportunity for a well-established bank, employing 12 people with many local customers to be sold to new owners who were committed to significant further investment to create the headquarters of a bank serving the Crown Dependencies.’

Mr Miller said he was approached by the Department of Economic Development after spending last year undertaking research into banking needs of personal, corporate and trust customers in Guernsey, where he is based.

’The Isle of Man Government should be congratulated on introducing the Alternative Banking Regime, which is both innovative and entrepreneurial. We first met them at the end of last year and have been in the Isle of Man on an almost weekly basis since then to progress potential models, engage with prospective stakeholders and to speak to Government about its various programmes to assist businesses moving to the island.’

Mr Miller said it had been looking at two approaches - one to establish a new bank which would serve the trust and fiduciary industry who are finding it increasingly difficult to open accounts for their clients and the other to buy an existing bank and then grow its offering.

’While I appreciate that Permanent Bank had never said it was up for sale, it is considerably more work to close a bank down than sell it. Here was an opportunity for Permanent TSB to exit the Isle of Man whilst saving jobs, creating an exciting new future for an ex-subsidiary and without any further negative impact on an already suffering industry,’ said Mr Miller.

’It’s very disappointing for us and for the people of the Isle of Man but we will continue with our plans to establish something that can become an offshore bank headquartered in the Isle of Man, employing local people and showcasing the potential of the Alternative Banking Regime.’

Permanent Bank yesterday said it would not elaborate on the statement it released to the media.