Deposits held by Guernsey banks grew another £6.5bn
(5.8%) during the continuing market turmoil in the final three
months of 2007.
The increase means that the total value of deposits rose by
£26.85bn (29%) during the twelve months to finish the
year at a new record high of £119.2bn.
The latest report from the Island's regulator, the
Guernsey Financial Services Commission (GFSC), shows that there
was a major increase in deposits during quarter one of last
year. Quarter 2 saw comparatively steady yet continued growth
and this has been followed by increasingly larger rises through
the second half of 2007.
The figures represent continued solid growth in corporate
business as well as increasing Swiss fiduciary deposits and
other inter-bank business.
During the last three months of 2007 Sterling weakened
against all major currencies, serving to inflate foreign
currency deposits when expressed in pounds. At the same time
there was strong volume growth in US, Dollar, Euro and Swiss
Franc business in their underlying currencies, which added to
the positive exchange rate effect of the weaker Sterling.
Sterling business itself also increased but to a lesser
The release of these figures follows the latest Guernsey
investment fund results showing growth of £13.7bn (8%)
during the quarter and £48bn (37%) year on year to close
2007 at a new record high of £178bn.
"These deposit figures come hot on the heels of the
news that the funds industry continues to perform superbly
however the results from the banking sector show that it is by
no means lagging behind," said Peter Niven, Chief
Executive of GuernseyFinance – the promotional agency
for the Island's finance industry.
"This growth during the so-called credit crunch
reflects the fact that during these uncertain times people do
take more comfort out of holding cash than investments and it
also shows that they are choosing Guernsey – a
location in which they can have confidence. Furthermore, the
fact that the Island is able to post exceptional funds figures
at the same time highlights just how our financial services
industry is firing on all cylinders."
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