Isle Of Man Banking Deposits Fall 6.4% In 2011

by Jason Gorringe, Tax-News.com, London

20 February 2012

The Isle of Man government has published a report on the territory's banking sector and its performance during 2011.

The report shows that total deposits decreased by some GBP2.27bn (4.6%) to GBP47bn in the final quarter of 2011. For the full year, deposits decreased at a lesser pace, by 6.4%, or GBP3.22bn. This represents a fall of GBP9.32bn in deposit value from the peak of December 2008 when deposits stood at GBP58.1bn.

There was a marked fall of GBP1bn in the value of corporate/trust/fiduciary deposits during the year, from GBP20.1bn to GBP19bn; retail deposits declined at a faster rate from GBP19.85bn to GBP18.1bn. Moderate declines were witnessed in group deposits.

The report shows that of a total of 33 banks present on the island, the majority of foreign institutions are UK-based banks, 16. There are a total of 4 Irish banking institutions, 2 Spanish, 2 South African, 2 Swiss, and one bank from France, Belgium, the Cayman Islands and the US operating in the Isle of Man. 2 banks present on the Isle of Man are domestic banks.

Banking sector assets, at GBP51.8bn, were predominantly denominated in the Pound Sterling, with GBP35.1bn, and GBP16.7bn in foreign currency.

37% of funds held by island banks were from Isle of Man-resident individuals and companies, 9% and 28%, respectively. 25% of funds deposited are from entities based in the United Kingdom; 3% from the Republic of Ireland; 5% from other EU countries; 9% from EEA countries; 2% from the Middle East; 3% from the Far East; and 4% from North America.

The banking sector is well capitalised according to the data, with all banks meeting or surpassing Minimum Risk Asset Ratios set by the regulator.

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