Two trends emerged:
- sterling deposits rose by £489 million
- the sterling equivalent value of currencies other than sterling - mainly US Dollars, Deutschmarks and Swiss Francs - fell by £1,160 million.
It is estimated that the effect of sterling's strength against the major currencies at the quarter end accounted for some £566 million of the decline. However, since the period end, sterling has eased somewhat against these currencies and the position might well unwind next quarter.
The currency breakdown is now split 35% sterling and 65% other currency deposits. Local inter-bank activity rose by £450 million.
A table showing deposits since 1980 is attached.
At the start of the quarter the licences held by the Guernsey branches of TSB Bank (Channel Islands) Limited and Lloyds Bank PLC were surrendered and a new licence issued to Lloyds TSB Bank (Guernsey) Limited. Similarly, the licences held by Coutts Financial Services Limited and National Westminster Bank PLC were surrendered and a new licence issued to NatWest Offshore Limited. None of the above would have had any material effect upon the overall totals at the period end.
DEPOSIT WITH LICENSED DEPOSIT-TAKERS
End No. of licensed Deposits Quarterly Yearly
Period 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
Jun 75 45,973 0.7
Sept 79 47,786 3.9
Dec 78 49,357 3.3 13.9
1998 Mar 76 48,658* -1.4
*Of which £1,736 million 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.
