Guernsey's finance industry is continuing to perform
robustly despite the credit crunch, according to Peter Niven,
Chief Executive of Guernsey Finance.
Figures released last week by the Guernsey Financial
Services Commission (GFSC) show that the value of funds under
management and administration in the Island grew by 1.7% over
the quarter to the end of June and banking deposits fell by
1.1% during the same period.
"The figures show that flows of business into the
Island have slowed over the past few months. This reflects the
fact that in the wider markets there is less confidence as a
result of the credit crunch. Not withstanding this, it is
encouraging to see that overall Guernsey's finance
industry continues to perform robustly," said Mr
Overall funds business now stands at a record £207.2bn
– up £3.4bn (1.7%) over the second quarter of
the year and has increased by £51.6bn (33.2%) from the
same time in 2007.
"It is very good news indeed that despite the market
conditions we are still seeing funds business coming into the
Island," added Mr Niven.
"There is still a lot of international corporate wealth
out there looking for a structure and that is what we are so
experienced and skilled at catering for but what we need to see
is greater confidence to put the business into place.
"As a result of this fragile confidence we have seen a
slowdown in the growth of our funds business but in some
respects this has been beneficial. At the current rate
practitioners can make sure that service levels on the
substantial business that they have taken in over the past few
years are as high as we would expect and that they are well
placed for when confidence returns and business levels
Total deposits held with Guernsey banks fell by £1.4bn
(1.1%) during the quarter to reach £128.1bn at the end of
June 2008. Swiss fiduciary deposits decreased by 3.9% during
the period but other deposits, mainly in Sterling and Euro,
continued to move upwards. Year on year deposit levels have
increased by £20bn (18.5%).
Mr Niven added: "What is encouraging is that we are
continuing to see deposits coming into the Island. We have seen
a drop in deposits this quarter primarily because a block of
Swiss fiduciary business was transferred out of the
jurisdiction to another part of the group but other deposits
continue to increase. Those in the market are aware that there
are some very good deposit products provided by the banks and
building societies in Guernsey."
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