Guernsey Bank Deposits Reach Record High

by Jason Gorringe, Tax-News.com, London

11 September 2007

It was announced on Monday that deposits held with Guernsey banks have reached another record high.

Figures from the Guernsey Financial Services Commission (GFSC) showed that the total value of deposits held with Guernsey banks reached a new high of GBP108.1bn at the end of June.

That represents an increase of GBP2.8bn (2.7%) during the quarter from the GBP105.3bn held at the end of March – the previous high – and a rise of GBP18.9bn (21%) year on year from the GBP89.2bn held at the end of June 2006.

“The deposit figures for the second quarter reflect the broader upward trend in business activity that the industry has experienced in recent months,” explained Mark Bright, Committee member of the Association of Guernsey Banks (AGB) and Managing Director of Ansbacher (Channel Islands) Ltd.

This is the thirteenth consecutive quarter of growth for the Guernsey banking sector, a trend that began in Spring 2004.

Peter Niven, Chief Executive of GuernseyFinance, observed that:

“The fact that this quarter’s growth comes on the back of steady but sustained increases during the past three years is particularly pleasing as it demonstrates the durability of what is one of the mature sectors of the Island’s finance industry.”

The GFSC report shows that net new deposit business has come principally from financial institutions in Guernsey, corporate customers and Swiss fiduciary deposits.

At the end of the quarter there was an all time high of GBP40.9bn Swiss fiduciary deposits, an area in which 14 banks in Guernsey are now active.

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