New Figures Reveal Mixed Fortunes For Gibraltar’s Financial Services Sector

by Jason Gorringe, Tax-News.com, London

28 September 2005

New figures published in a report by local newspaper Panorama have shown that Gibraltar's financial services sector has experienced mixed fortunes over the last ten years.

According to the report, although the number of bank licences has steadily declined over the last decade, there has been an increase in the number of investment and insurance firms based in Gibraltar.

In 1995, the total number of bank licenses stood at 28. This number has steadily dwindled over the intervening years, and in 2004, there were 17 bank licenses, the figures show. Commercial bank deposits have also declined from their 1994 peak of £3.4 billion ($4 billion), although they increased between March 2004 and March 2005 from £2.6 billion to £2.9 billion.

The main growth has been witnessed in the number of insurance companies and insurance intermediaries based in Gibraltar. The former increased from 12 in 1996 to 39 in 2004, while insurance intermediaries have risen from 17 in 1996 to 28 in 2004.

Investment firm numbers have also undergone rapid growth, increasing from a total of 12 in 1996 to a current figure of 27, the report stated.

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