Total deposits held with Guernsey banks at the end of March 2013 increased 4.4% in Sterling terms, by £3.8 billion from the end of December 2012 level of £86.7 billion, up to £90.5 billion. That still leaves total deposits 10.4% lower than at the same time a year ago. Total assets and liabilities have increased 3% by £3.5 billion to £117.5 billion over the quarter which was 8.4% lower than the level a year ago.
Swiss fiduciary deposits remain unattractive to customers in the continuing low interest rate environment. They were broadly stable in base currencies although they did increase slightly in Sterling terms during the quarter. Swiss fiduciary deposits now represent 29.3% of all deposits, with six banks in Guernsey currently active in this area.
Sterling weakened against the US Dollar, Euro and Swiss Franc. This had an overall positive effect of boosting the level of deposits expressed in Sterling. However there was a small volume increase during the quarter. The figures in the underlying base currencies show that deposits in US Dollars increased by 0.7% and deposits in Sterling increased by 2%, though deposits in Euros decreased by 1% and deposits in Swiss Francs decreased by 9.7%. This led to some movement in the overall currency mix; the proportion of deposits in Sterling decreased to 26.5% while deposits in US Dollars increased to 53.1%. Euro deposits decreased to 12.7% and Swiss Franc deposits fell slightly to 2.5%.
No new banking licences were issued during the quarter and none were surrendered.
A table is available here showing the level of the total deposits and total assets and the number of licensed institutions since 2003.
Philip Marr, Director of Banking, commented:
“After the step change downwards in the final quarter of 2012, following the transfer of a book of business out of the island, a more stable picture has emerged in 2013. We are still seeing the effects of Sterling exchange rate changes, in this quarter positive, but the business has been broadly stable across all fronts with some pockets of growth notably in US Dollar business and in Sterling business. ”
Swiss fiduciary deposits remain unattractive to customers in the continuing low interest rate environment. They were broadly stable in base currencies although they did increase slightly in Sterling terms during the quarter. Swiss fiduciary deposits now represent 29.3% of all deposits, with six banks in Guernsey currently active in this area.
Sterling weakened against the US Dollar, Euro and Swiss Franc. This had an overall positive effect of boosting the level of deposits expressed in Sterling. However there was a small volume increase during the quarter. The figures in the underlying base currencies show that deposits in US Dollars increased by 0.7% and deposits in Sterling increased by 2%, though deposits in Euros decreased by 1% and deposits in Swiss Francs decreased by 9.7%. This led to some movement in the overall currency mix; the proportion of deposits in Sterling decreased to 26.5% while deposits in US Dollars increased to 53.1%. Euro deposits decreased to 12.7% and Swiss Franc deposits fell slightly to 2.5%.
No new banking licences were issued during the quarter and none were surrendered.
A table is available here showing the level of the total deposits and total assets and the number of licensed institutions since 2003.
Philip Marr, Director of Banking, commented:
“After the step change downwards in the final quarter of 2012, following the transfer of a book of business out of the island, a more stable picture has emerged in 2013. We are still seeing the effects of Sterling exchange rate changes, in this quarter positive, but the business has been broadly stable across all fronts with some pockets of growth notably in US Dollar business and in Sterling business. ”