Tynwald has approved a new depositors' protection scheme for the Isle of Man.

Members unanimously supported a package which which has increased the guaranteed compensation from ?15,000 to ?50,000.

The main concern expressed during the three hour debate was whether depositors with the Isle of Man branch of the Icelandic bank Kaupthing Singer and Friedlander - which went into liquidation overnight - would benefit from the new scheme.

Mr Bell said the situation was too 'sensitive' for him to respond in the Tynwald chamber, but there would be a statement later this afternoon.

Explaining the need for the first emergency sitting of Tynwald since 1967, he said decisive action was needed, with the situation in the global financial crisis changing by the hour.

Discussions on how the improved scheme will be funded will take place between now and the next scheduled sitting of Tynwald, On October 21st.

The new depositors' protection scheme brings the Isle of Man into line with the United Kingdom and puts it ahead of the Channel Islands and most other European countries.

Meanwhile, there will be a meeting for Kaupthing Singer and Friedlander depositors at the Gaiety Theatre, at 4pm today.