Guernsey Bank Deposits up 3% In First Quarter Of 2003

by Jason Gorringe, Tax-News.com, London

18 June 2003

Fluctuating exchange rates and the effect of a weakening pound have combined to increase the deposits in Guernsey banks by 3% in the first quarter of 2003, according to the Financial Services Commission's latest statistics.

This translates to a rise from £71.94 billion at the start of the year to £74.165 billion after the first three months. However, it falls short of the £77.27 billion record achieved last year, and represents roughly half of the amount held in Jersey banks.

In spite of this, Phillip Marr, the Guernsey Financial Services Commission's director of banking told the Guernsey Press and Star that he was encouraged by the figures: "Although the increase in deposits in Sterling terms is inflated by the weakening of Sterling exchange rates, it was encouraging that there was a real increase in volume terms at this time of uncertainty internationally."

The largest single currency type within total deposits remains the US Dollar at 42.7%, with the Euro accounting for 20.2% of deposits at the end of March 2003. The proportion in Sterling was down a little at 31.4%. When looking at the underlying business in Euros over the last year, the value of Euros on deposit fell from 22.2bn at 31 March 2002 to 21.4bn as at 31 March 2003.

The amount of Swiss fiduciary deposits stood at £30,549mn or 41.2% of the total.

One bank surrendered its licence during the First Quarter: FleetBoston Financial (Guernsey) Limited, with effect from 1 January 2003.

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