Most of the banks saw some increase in deposits with quite a number increasing strongly. However, the imminent departures of Chemical Bank and Lazards are already having an impact as between them some £900 million of deposits were relocated outside the Island.
Some of the fall in deposits may be explained by the noticeable increase in investment business in this quarter reported last week. Movements in the exchange rate would also have affected the deposit total adversely as over the quarter sterling strengthened against the dollar, deutschmark and Swiss franc. Once, again the decrease in deposits was all in currency with those in sterling actually increasing by £577 million. The split of the total deposits is now 72% in currency to 28% in sterling.
One new banking licence was issued during the quarter when Bank of Cyprus opened a subsidiary towards the end of the quarter. No licences were surrendered.
A table showing deposits since 1980 is listed below.
Deposits with licensed deposit-takers
End No.of licensed Deposits Quarterly Yearly
Period institutions £Mn Variation Variation
% %
1980 43 1,800 68.2
1981 42 2,691 49.5
1982 41 3,307 22.9
1983 41 4,243 28.3
1984 45 5,838 37.6
1985 47 7,209 16.7
1986 52 9,508 31.9
1987 54 8,838 -7.0
1988 56 10,168 15.0
1989 58 12,992 27.8
1990 Mar 66 13,387 3.0
Jun 68 13,469 0.6
Sept 70 14,522 7.8
Dec 72 15,476 6.6 19.1
1991 Mar 72 16,203 4.7
Jun 72 16,829 3.9
Sept 71 16,156 -4.0
Dec 72 16,250 0.6 5.0
1992 Mar 73 17,849 9.8
June 72 17,673 -1.0
Sept 73 21,226 20.1
Dec 76 27,442 29.3 68.9
1993 Mar 73 30,299 10.4
Jun 74 32,605 7.6
Sept 75 37,595 15.3
Dec 75 37,482 -0.3 36.6
1994 Mar 74 37,773 0.8
Jun 73 40,320 6.7
Sept 73 41,439 2.8
Dec 73 42,191 1.8 12.6
1995 Mar 72 43,018 2.0
June 73 45,207 5.1
Sept 73 44,437 -1.7
Dec 73 46,855 5.4 11.1
1996 Mar 75 45,897 -2.0
June 76 44,917* -2.1
Note: Deposit figures prior to 1985 do not include deposits with clearing banks' branches. The increase of 16.7 per cent for 1985 is the increase in deposits with non-clearing banks.* of which £2,533mn constitutes local interbank deposits.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
For further information contact Peter Crook on Tel: +44 (0) 1481 712 706 or fax: +44 (0) 1481 712 010.
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