Deposits Held In Guernsey Banks Fall By More Than £3 Billion

by Jason Gorringe, Tax-News.com, London

27 August 2002

Deposits held in Guernsey fell for the first time in nearly three years last quarter, according to a report from the Guernsey Press and Star.

The newspaper reported late last week that over the past three months, the sum of cash invested alone fell £3,038 million to £74,235 million. However, the Guernsey Financial Services Commission has indicated that the 3.9% fall was expected, and does not represent any great cause for concern.

Observing that the figures are still better than they were 12 months ago, the FSC explained to the Guernsey Press that the strengthening of the pound against the dollar, and restructuring at four local banks both contributed to the fall in assets under management.

'The intentions of these banks to restructure has been known for some time, but the impact has only just been reflected in the figures,' Philip Marr, director of banking at the FSC explained last week, adding that:

'Restructurings have been a feature of the global banking scene for some time and are likely to continue throughout this year with a consequent effect on the number of licensed banks.'

Recommended