Mr Teare’s reply to the question of whether community banking could be practised in the island concluded that:
I would stress to anyone considering this type of venture, that a peer-to-peer
lending company would not be licensed by the FSC. It would not be regulated by the FSC and
perhaps most importantly, anyone who provided money under a peer-to-peer model would not be
protected by regulatory capital requirements, or by the Depositors’ Compensation Scheme.
Not regulated by the FSC? So the FSC protects us from failing banks?
Mr T also commented that the term ‘bank’ would not be permissable. Otherwise nothing standing in the way then? Let’s take a look at alternative money systems: