New figures show that the value of deposits in Guernsey banks
grew by £1.3bn (1.1%) during the first three months of the
This increase took the total value of Guernsey bank deposits to
£118.7bn at the end of March 2010.
However, the quarter of growth follows a full year of
contraction and therefore means that deposits have fallen in value
by £24.2bn (17%) since the same time last year.
Peter Niven, Chief Executive of Guernsey Finance, said:
"This is the first time in fifteen months that I have been
able to report growth in the value of banking deposits during the
previous quarter. It is encouraging that we have seen this increase
– albeit small – during the first three months
of this year and it reflects the greater stability in the banking
sector at the moment.
"It is also important to look at the underlying trends,
which provide more revealing information. For example, the
returning confidence in the investor markets and a sustained low
interest rate environment has resulted in a continued decline in
Swiss fiduciary deposits, with a fall this quarter of nearly 6%.
Other deposits – excluding the Swiss product –
increased moderately to a level 5% higher than the crisis period of
October 2008. These figures have been buoyed to some extent by the
weakening of Sterling against other currencies but having said
that, those already held in Sterling and therefore unaffected by
exchange rate movements did increase slightly for the second
quarter in succession."
Analysis of the figures from the first quarter of the year shows
that Swiss fiduciary deposits contracted by £2.4bn (5.7%)
from £41.8bn at the end of December 2009 to £39.4bn at
the end of March 2010.
Overall, other deposits – excluding Swiss fiduciary
deposits – increased by £3.7bn (4.8%) from
£75.6bn at the end of December 2009 to £79.3bn at the
end of March 2010.
The effect of exchange rate movements in the quarter was
significant and this has also impacted on the overall currency mix
where Sterling deposits decreased very slightly to 23.8% of the
total deposit base, Swiss Franc deposits fell to 3.4%, US Dollars
rose to 46.7% and Euros dropped to 22.8%.
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