The Isle of Man parliament has approved laws that will introduce a new alternative banking regime (ABR) allowing two additional types of banking licences on the island.
The new framework has been developed through collaboration with the Department of Economic Development and the Isle of Man Financial Services Authority (FSA), and aims to encourage the entry of new banks to the island.
The new banking regime will especially benefit those sectors that need niche banking facilities, a statement from the Isle of Man government said.
Isle of Man department member for financial services and registries Leonard Singer said: “In particular we are seeking to attract non-retail niche banking operations and also representative offices of foreign banks. We are already in talks with several such banks which have expressed interest in the ABR.”
The legislation is scheduled to be effective from 1 August 2016.
Isle of Man minister for the department of economic development Laurence Skelly said: “The new Alternative Banking Regime is a progressive initiative that is set to attract new banking operations to the Island.
“Our existing banks provide an excellent service, but the number of operators has fallen since 2008 and this initiative aims to increase the choice for businesses in the Isle of Man and internationally."