The total of deposits held by Guernsey banks at the end of March rose by £2,328 million from the previous quarter, an increase of 5.4 per cent. Total deposits now stand at £45,652 million, of which interbank activity accounts for £1,858 million. Indeed, net of the interbank deposit figure, deposits are at the highest ever level. The increase follows four quarters where total deposits have fallen marginally.

The increase in deposits was reflected in most banks' deposit bases with a number increasing strongly. With the exchange rates of the major currencies held by banks on the Island moving in opposite directions between the last two reporting dates, the overall impact upon converting non-sterling deposits to sterling was mildly beneficial. The split between sterling and currency remains 32/68 per cent.

One new banking licence was issued late in the quarter with Deutsche Bank AG setting up a subsidiary on the Island. This would not have had any effect on the overall figures yet. No licences were surrendered.

A table showing deposits since 1980 [direct all enquiries to Peter Crook, Director General on tel: (01481) 712706] as of 8 May 1997.


DEPOSITS WITH LICENSED DEPOSIT-TAKERS

END PERIOD    NO. OF LICENSED    DEPOSITS    QUARTERLY     YEARLY
               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              
1997  Mar       73               45,652 *      5.4              

* of which £1.858 million constitutes local interbank deposits

For further information contact Peter Crook on Tel: +44 (0) 1481 712706 or visit the Guernsey Financial Services Commission Web Site at:

http://gfsc.guernseyci.com