Guernsey banks finished the year on a strong note with activity in the final quarter pushing total deposits to £49.357 million, expressed in sterling as at the end of December 1997, its highest ever level and an increase of £1,571 million (3.3%) over the quarter.

Sterling has strengthened against the major currencies over the quarter. Despite this, foreign currency deposits when translated into sterling rose by £1,082 million. The currency breakdown remains one third sterling, two thirds foreign currency - mainly US Dollars, Deutschmarks and Swiss Francs. Sterling deposits rose by £489 million. Local interbank activity fell by £624 million.

Over the year deposits rose by £6,033 million (13.9%), the largest annual increase since 1992.

A table showing deposits since 1980 is attached.

During the quarter the Royal Bank of Scotland (Guernsey) Limited surrendered its banking license. This had no effect on the figures as the business was transferred to the Guernsey branch of the Royal Bank of Scotland International Limited. No licenses were issued in this period. However, there were other surrenders and issues of licenses over the New Year period.

Director of Banking, Philip Marr said:

"the industry can be well pleased with the record deposit levels and we should also mention that total assets passed the £50 billion mark during the quarter reaching £54,205 million at the end of December."

DEPOSITS WITH LICENSED DEPOSIT-TAKERS

End Period   No of Licensed   Deposits   Quarterly    Yearly
              Institutions      £Mn      Variation   Variation
                                            (%)         (%)

1980              43           1,800
1986              52           9,508
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
     June         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
     June         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
     June         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
     June         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
     Sept         75          43,832       -2.4
     Dec          72          43,324       -1.2        -7.5
1997 Mar          73          45,652        5.4
     June         75          45,973        0.7
     Sept         79          47,786        3.9
     Dec          78          49,357*       3.3        13.9

*Of which £1,286 million constitutes local interbank deposits

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