Channel Island Banks Bounce Back From September 11

by Amanda Banks, Tax-News.com, London

13 March 2002

According to a report released by the Jersey Financial Services Commission (JFSC) last week, the Channel Island jurisdiction's banking sector has recovered well from the economic after-effects of the September 11 terrorist attacks.

The quarterly report to 31 December 2001 shows that Jersey bank deposits were up 12.7% on the same period of the previous year, and 2.4% on the previous quarter, coming in at around £132 billion. Funds domiciled on the island have increased to £103 billion, representing an increase of 13.8% compared with 2000 figures, and a 9.1% leap since the release of the previous quarter's figures.

Speaking to the Jersey Evening Post, JFSC Director General, Richard Pratt welcomed the growth in the financial sector, and explained that although the number of banking licences issued fell in the first half of the year from 70 to 64, this was the result of mergers and acquisitions, rather than banks leaving the island.

'There clearly remains some continuing effect of the terrorist attacks in the US on 11 September,' he admitted. 'Nevertheless, the continued steady inflow of investment through the island remains highly encouraging.'

Meanwhile, the Guernsey banking sector has also announced an increased inflow over the period to 31 December, with deposits held in Guernsey banks reaching a new high of £77.2 billion, which represents a 1.4% increase on the previous quarter. The net asset value of Guernsey domiciled funds also showed an increase of 12% to £33.2 billion, according to figures to the end of last year

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