The total of deposits held by Guernsey banks at the end of March fell by £958 million from the end year total, a drop of 2.0%. The majority of banks showed an increase in their deposit levels but local interbank activity was down by £897 million which accounted for most of the overall decrease. Total deposits now stand at £45,897 million.

The decrease in deposits was all in currency with those in sterling actually increasing and as a result the split of the total deposits is now 27% in sterling to 73% in currency. Movements in the sterling exchange rate against the major currencies in which currency deposits are held varied, with a stronger dollar but weaker deutschmark and Swiss franc. Overall therefore, because of the preponderance of dollar deposits, exchange movements acted to reduce the amount of the fall over the quarter.

The total number of licensed banks increased to 75 during the quarter after new banking licences were issued to Northern Rock (Guernsey) Limited and for a branch of ING Bank (Switzerland). Neither of these would have had any effect on the overall figures yet.

A table showing deposits since 1980 is below.

Enquiries to: Peter Crook (Superintendent of Banks). Tel: (01481) 712706, Fax: (01481) 712010

La Plaiderie Chambers, La Plaiderie, St. Peter Port, Guernsey, Channel Islands, GY1 1WG.

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
     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
     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
     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
     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
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 £2,451 mn 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 712706, Fax: +44 (0) 1481 712010.

Visit the Guernsey Financial Services Commission Web Site at Click Contact Link