Guernsey's banking sector is in a more positive position
than a continuing decline in deposit levels might suggest,
according the head of the promotional agency for the Island's
finance industry.
Figures from the Guernsey Financial Services Commission (GFSC)
show that the value of Guernsey bank deposits fell by 2.3% during
the final quarter of last year. This took the total value of
deposits to £177.4bn at the end of December 2009 –
a 25.2% decrease from twelve months previously.
However, Peter Niven, Chief Executive of Guernsey Finance,
believes that the sector is better placed than the top-level
analysis initially seems to indicate.
Mr Niven said: "What we can see is that a year ago the
global financial downturn and an associated flight to quality were
pushing deposit figures to a peak. Since then, there has been a
decline in the deposit base as a result of returning confidence
within the investor markets coupled with a very low interest rate
environment.
