guernsey experiences record bank deposit levels, while jersey recovers from previous quarter fall
The latest figures released by GuernseyFinance and Jersey Finance show the islands' banks are booming.
In Guernsey, the banks reached record deposit levels of £89.37bn at the end of September 2006, up 15% over the year, and up £110m over the previous quarter.
Over the same period, Jersey posted an increase in bank deposits to £187.6bn, an upturn following a fall in the level of deposits in the previous quarter.
Peter Niven, chief executive of GuernseyFinance, said: "This is good news. The growth during the quarter was only marginal but came on the back of sustained increases during the previous two years."
This was the 10th consecutive quarter of growth.
He added: "The growth demonstrates the robust nature of this mature sector of the island's finance industry, especially when considered against the continued negative exchange rate effect caused by the strengthening of sterling against the major currencies."
Beverley Le Cuirot, director of marketing, Jersey Finance, said: "The latest figures are encouraging, especially at a time of intense competition within all sectors of the finance industry. While the number of banking licences reduced by one during the period, the banking sector reported a healthy increase of £3.9bn in banking deposits during the quarter, a positive sign after the fall recorded in the previous quarter."
The quarter saw BBVA Privanza (Jersey) surrender its deposit-taking license in Jersey, while a change of ownership in Guernsey saw Landsbanki take over the business of Cheshire Guernsey, which now trades as Landsbanki Guernsey.
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