Guernsey banking deposits grow in Q3

The value of deposits held by banks in Guernsey grew by £3.5 billion (4.5%) during the third quarter of the year.

Figures from the Guernsey Financial Services Commission (GFSC) show that the value of bank deposits reached £80.9 billion at the end of September. This is still around £3 billion lower than the same time last year.

Since the end of the third quarter, it has been announced that major South African banking group, FirstRand, has been issued a licence for a Guernsey branch. It means that there are now 31 licensed banks in Guernsey.

The new FirstRand operation will trade as FNB Channel Islands and will launch formally next year.

Fiona Le Poidevin, Chief Executive of Guernsey Finance – the promotional agency for the Island’s finance industry, said: “It is extremely encouraging that the value of bank deposits in Guernsey has grown during the third quarter of the year. Globally, banks have been operating in a low interest rate environment and were deleveraging so it was not a surprise that the value of deposits held by Guernsey banks fell in the last few years.

“The latest statistics might indicate that the deleveraging process is now starting to slow but equally there could also be foreign exchange factors at play, something which will only become clearer over time. It is difficult to get a clear picture from just a single quarter of information; nevertheless, it is comforting that the position has stabilised somewhat and that there was a rise in the three months to the end of September.”

“This is especially pleasing following the news that FirstRand has been issued a licence for a Guernsey branch. FirstRand is South Africa’s largest bank by market capitalisation and so to have it launching a Guernsey operation is a major endorsement of our banking sector. It also enhances FirstRand’s presence in Guernsey as it already provides a wide range of fiduciary services through FNB International Trustees Limited – the specialist international offshore service provider of the FirstRand Group.”

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