Jersey may be about to relax its policy of only allowing the top 500 banks in the World to be registered there.

A policy document from the Government of Jersey suggests a review of the island's age-old rule that only the top 500 banks of the World can be registered there. As private banking forms one of the main banking sectors on the island, this might presage an expansion in the number of registered private banks, especially of the second tier.

Page 16 of the so-called "policy framework" reads: "Previously Jersey’s policy on banking regulation was that only those banks within the World’s top 500 and that met a number of other criteria were eligible to be licensed in Jersey. As a result of the changing structure of international banks following the financial crisis this policy is currently under review. This anticipated change in policy does not mean that Jersey intends to lower its standards for those banks looking to have a presence on the Island. However, it does demonstrate that the government and the regulator understand the changing banking environment and  the need for alternative licensing approaches that facilitate additional opportunities without exposing the Island to undue risk."

Critics who believe that this represents a lowering of standards might point to another passage, on page 3, which reads: "With the threat of ambitious new centres located across the globe, we must continue to compete and remain very much open for business in a proportionate and targeted way."