|Guernsey Banking Deposits Fall|
Total deposits held in Guernsey banks have fallen below the GBP100bn mark, according to third quarter figures from the Guernsey Financial Services Commission, which show a 6% decrease in deposits in sterling terms since June 2012, and a 15.1% fall year-on-year.
Total funds deposited with Guernsey banks at the end of September 2012 decreased by GBP6.2bn from the end of June 2012 level of GBP103.1bn, down to GBP96.9bn. Total assets and liabilities decreased by GBP7.7bn to GBP123.5bn representing a 5.9% decrease over the quarter and a 11.5% fall since September 2011. The lower figures reflected the effects both of volume and exchange rate factors, the Commission said.
Sterling strengthened against the US Dollar, Euro and the Swiss Franc. This had a negative effect on the level of deposits expressed in sterling, adding to the material decrease in the volume of deposits during the quarter. The value of holdings expressed in the underlying base currencies show that deposits in US Dollars increased by 5.1%; Euro deposits decreased by 23.2%; deposits in Swiss Francs decreased by 13.7%; and Sterling deposits fell by 3.4%. This led to some movement in the overall currency mix. The proportion of deposits in sterling increased to 25.1% while deposits in US Dollars increased to 51.7%. Euro deposits decreased to 14.9% and Swiss Franc deposits fell slightly to 3%.
No new banking licenses were issued during the quarter but one was surrendered. The Bank of New York Mellon (CI) Limited surrendered its license in July following a worldwide strategic review at group level. This was a small bank originally licensed as Mellon Bank (Channel Islands) Limited in 1999, which engaged principally in business with other parts of the Mellon Group.
Director of Banking commented: “Global deleveraging continued to influence the Guernsey aggregate banking figures and total deposits and total assets and liabilities resumed their downward trend. Difficult economic conditions reduced interbank activity and measures to conserve capital by global banks are working together to produce further balance sheet contraction across a range of licensed banks. The short term outlook is for more of the same and further erosion of the level of deposits. The difficult economic environment has already generated several cases of rebalancing of books of business within the Crown Dependencies and we can expect a continuation of the transfer of business books among the Crown Dependency finance centers driven primarily by the goal of achieving economies of administration.”
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Published on our website on December 10, 201