Guernsey FSC Releases 2nd Quarter Banking Figures

by Jason Gorringe, Tax-News.com, London

30 September 2004

Total deposits held with Guernsey banks at the end of June 2004 recorded a marginal increase in sterling terms as the value of the pound weakened against the main currencies, the Guernsey Financial Services Commission revealed in its report on second quarter banking statistics.

The report shows that the total value of deposits rose by £98 million in the three months to June 2003, up 0.1%.

Meanwhile, US dollar, euro and Swiss franc deposits were down 2.2%, 1.8% and 2.6% respectively when valued in their base currencies, the latter due to the low rates of interest on offer for that currency, according to the GFSC.

Sterling deposits however, were up 2.9% in the quarter.

The largest single currency type within total deposits remained the US dollar at 37.1% with the euro accounting for 22.3% of deposits. The proportion in sterling was up a little at 36.1%.

No banking licences were issued or surrendered in the second quarter, the report stated.

Philip Marr, Director of Banking observed:

"We have benefited this quarter from the weakening of sterling so that in sterling terms total deposits and total assets and liabilities have increased marginally."

“Underlying those figures were several divergent movements. Deposits in currencies with low interest rates were down but deposits in currencies where interest rates have been rising were up, notably sterling," he added.

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