Relocation Results In Further Fall In Deposits

For immediate use

The total of deposits held by Guernsey banks at the end of September fell by £1,085 million from the previous quarter, a decrease of 2.4%. Total deposits now stand at £43,832 million.

Nearly all banks saw some increase in deposits with quite a number increasing strongly but the final effect of the loss in deposits resulting from the relocation of Chemical Bank and Lazards outside the Island outweighed the increases. Movements in the exchange rate would also have affected the deposit total adversely on conversion to sterling (by about £200 million) as over the quarter sterling strengthened against the dollar, deutschmark and Swiss franc. Local interbank activity fell by £283 million to £2250 million.