The larger part of the overall increase was in sterling, up £743m or 4.4% over the quarter. This strong growth in sterling deposits reflects the continued success of the offshore deposit gatherers in attracting deposits in the offshore retail market place.
Foreign currency deposits - mainly USD, DEM and CHF - rose by £391m when expressed in sterling. Some £280m of that increase was explained by the slight weakening of sterling since the end of the first quarter, a development which was anticipated at the time the March figures were released.
The currency breakdown is now split 36% sterling and 64% other currency deposits. Local inter-bank activity was slightly down. A table showing deposits since 1980 is attached.
During the quarter a new licence was issued to the Greek owned Ergobank International (C.I.) Limited. No licences were surrendered. This would not have had any material effect upon the overall totals at the period end.
Philip Marr, Director of Banking says:
"The figures are a positive endorsement of Guernsey as a finance centre. The fact that increases were recorded across a wide range of banks is a sign of continued confidence in Guernsey banks."
DEPOSITS WITH LICENSED DEPOSIT-TAKERS
End No. of licensed Deposits Quarterly Yearly
Period institutions £Mn Variation Variation
% %
198O 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
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
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 -7.5
1997 Mar 73 45,652 5.4
Jun 75 45,973 0.7
Sept 79 47,786 3.9
Dec 78 49,357 3.3 13.9
1998 Mar 76 48,658 -1.4
Jun 76 49,792* 2.3
* of which £l,670 million constitutes local interbank deposits
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