Total Deposits In Guernsey Banks Increased During Fourth Quarter Of 2004

by Jason Gorringe, Tax-News.com, London

02 March 2005

Total deposits held with Guernsey banks in sterling terms increased by 2.6% to £70.4 billion between the end of September and the end of December 2004, driven mainly by a strengthening of sterling against the US dollar, figures released by the Guernsey Financial Services Authority have revealed.

According to the GFSC’s quarterly report, US dollar deposits were up 8.6% in their underlying currency, although Euro deposits were down 0.9% when expressed in their underlying currency. Sterling deposits were up 3.3% in the quarter.

Meanwhile, Swiss fiduciary deposits increased in sterling terms by 2.2% to stand at £25.7 billion, representing 36.5% of the total. Short term paper issued increased by 16% over the quarter to stand at £1.45 billion.

The proportion of total deposits in sterling was up a little at 36.5%, while the US dollar remains at 36.2% with the Euro accounting for 22.6% of deposits.

On an annual basis total deposits expressed in sterling were up 1% compared with the 3.1% decline the previous year, while total assets and liabilities at the year end stood at £74.94 billion.

The GFSC also reported that no new banking licences were issued during the fourth quarter of last year, although five licences were surrendered.

“Although there were exchange rate changes it was encouraging that there were genuine volume increases in both US dollars and sterling,” observed Philip Marr, Director of Banking.

“Although the number of licensed banks has declined it is evident in 2004 that a smaller number of banks were transacting a higher level of banking business,” Mr Marr added.

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