Press Release - Deposits Pass Fifty Billion Pounds

Total deposits held with Guernsey banks at the end of September 1998 increased 1.3% by £642 million from the end of June to reach a record high of £50,434 million.

The increase, which was recorded across a wide range of banks, was predominantly in sterling. It may be partly explained by a move by investors into cash deposits following the turmoil in securities markets during the quarter. Foreign currency deposits - mainly USD, DEM and CHF - remained flat was expressed in sterling. The currency breakdown is split 37% sterling and 63% other currency deposits. A table showing deposits since 1980 is attached.

There were two new licences issued during the quarter, both to banks in the top 250 in the world. First, a licence has been issued to a branch of the largest bank in Greece: National Bank of Greece S.A. and second, a subsidiary of Hamburgische Landesbank: Hamburgische Landesbank (Guernsey) Limited was granted a licence. This bank is one of the top 20 banks in Germany. No