Total deposits held with Guernsey banks at the end of June 2013 decreased 0.9% in sterling terms, by £0.8 billion from the end of March 2013 level of £90.5 billion, down to £89.7 billion. This still leaves total deposits 13.0% lower than at the same time a year ago. Total assets and liabilities have decreased 0.5% by £0.6 billion to £116.9 billion over the quarter which is 10.9% lower than the level a year ago.
Swiss fiduciary deposits remain unattractive to customers in the continuing low interest rate environment. Swiss fiduciary deposits now represent 29.4% of all deposits, with six banks in Guernsey currently active in this area.
Sterling strengthened slightly against the US Dollar but weakened against the Euro and Swiss Franc. This had an overall positive effect of boosting the level of deposits expressed in sterling, however this was outweighed by a large volume decrease during the quarter.
The proportion of deposits in US Dollars decreased to 52.3% but Euro deposits increased to 12.9%. Deposits in sterling remained at 26.5% and Swiss Franc deposits remained at 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.
Jeremy Quick, Director of Banking and Insurance Supervision and Policy Division, commented:
“Since 2008/09 the size of the banking sector in Guernsey – as in the other Crown Dependencies – has materially reduced due primarily to global deleveraging and low interest rates. The latest quarterly figures in Guernsey show no signs that this trend is abating at present”