Total deposits held with Guernsey banks at the end of Spetember 1999 fell 1.6% by £878 million from the end of the previous quarter to reach a new high of £55,703 million.
The dominant foreign currency element, when reported in Sterling, was adversely affected by the strengthening of the pound against the major currencies - mainly USD, EUR and CHF. In fact, when expressed in their base currencies, the underlying figures remained steady. Some of that exchange rate pressure has already eased in the current quarter.
Sterling deposits were down 0.8% by £166mn. In the sterling deposit markets there signs that the intensity of competition in the onshore personal savings market is having an impact on the offshore market as some depositors switched funds.
