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Guernsey Banking sector sees a decline in Q3

Posted by jamesarklie on November 4, 2013

Total deposits held with Guernsey banks at the end of September 2013 decreased 6.3% in sterling terms (£5.6 billion) down to £84.1 billion. This is down from a level of £89.7 billion at the end of the June 2013 quarter and down 13.3% from the same time a year ago.

Several factors appear to have contributed to this –

  • Swiss fiduciary deposits currently do not have the attraction they once did because of the continuing low interest rate returns available, although they do still represent 29.7% of all deposits and six banks remain active in this arena
  • Sterling strengthened against the US dollar, Euro and the Swiss Franc which creates a negative effect when expressed in Sterling
  • There was also a substantial decrease in the volume of deposits during the quarter.

Jeremy Quick, Director of Banking and Insurance Supervision, commented – ‘The latest quarterly figures show no change from the previous trend of a continuing decline in deposits due to global deleveraging. The assets in sterling have now reduced by 39% from a peak in 2008.’