Bank deposits fall by £1.7bn

THE latest bank deposit figures show that investors remain confident in the Island's ability to meet their needs, says the deputy chief executive of Jersey Finance.

Jersey Finance deputy chief executive Heather Bestwick
Jersey Finance deputy chief executive Heather Bestwick

THE latest bank deposit figures show that investors remain confident in the Island's ability to meet their needs, says the deputy chief executive of Jersey Finance.

And Heather Bestwick said that the fact that deposit and fund figures remain stable show that the banking sector is holding up well in turbulent times.

'In these volatile times international investors are looking for stability, a secure finance environment, innovation in products and a quality service offering. Jersey continues to provide such a combination, which is helping us maintain our appeal to international investors,' she said.

There was a slight fall of £1.7 billion in the value of bank deposits held in Jersey in the third quarter of 2012 to £148.7 billion.

Comments for: "Bank deposits fall by £1.7bn"

Meingott

Before all the anti-finance doom-mongers pop on to spout their ill-informed nonsene, such a 1% decline would be expected as markets favour risk-on asset allocation, such as equities.

Pretty favourable if you ask me.

tony

Perhaps you should review the figures over the last few years, a decline year on year and likely to continue. These falls, including the latest 1% fall can hardly be described as stable!

Steven Lord

Actually it was innovations in products that was a significant contributor in nearly blowing up the world economy by finance operators in the industrialised economies.

Bean Abroad

Quite easy for the uninformed to paint all financial products with the same brush. Not all of them are the evil bogeyman...some of them were (and still are) key to the health of the worlds commerce and finance.

tom jones

But he's correct as he didnt say all financial innovation. As Paul Volker said, ex head of the Federal Reserve, the best innovation out of the banking industry in the last 40 years has been the cash point machine.By the way I'm well informed having worked in senior positions in investment industry and not in the Jersey admin finance world.

Bean Abroad

It was a sweeping statement about financial products which were manufactured in the finance centres of the USA and have nothing to do with Jersey. It is an irrelevent and ill-informed comment in respect to Jerseys bank deposits falling slightly.

Pip Clement

Maybe investors are favouring risk-on investments like equities but they are not buying them through Jersey funds as shown in the JFSC statistics;

http://www.jerseyfsc.org/funds_securities_issues/statistics/collectiveinvestmentfundstatistics.asp

There is now a long term trend in the decline in the number of banks and the deposits held by them since 2007 and banking is now about the size it was in 2003 by the JFSC's own figures;

http://www.jerseyfsc.org/banking_business/statistics/growthinbanks.asp

I have predicted that the Jersey finance industry will decline due to increased globalisation and competition and I think that the current situation bears out my predictions. I have never predicted it's collapse.

B

Meingott - what's your prediction of the impact of the UK version of FATCA should Jersey sign-up?

tony

The Isle of Man has agreed to sign up but Jersey and Guernsey are digging in and are saying they want a level playing field. The Islands Governments are trying to portray strength but the reality is we will have no choice but comply with whatever the UK impose. Its a shame that Jersey is not proactive like the Isle of Man. This indicates that there is a real concern with regards to the potential loss of business

Pip Clement

Looking at the numbers the real decline has ben in currency deposits, not sterling deposits;

http://www.jerseyfsc.org/banking_business/statistics/growthinbanks.asp

I suspect that we are seeing a rehoming of money from Jersey to finance centres closer to the investor's home country.

For instance, Hong Kong and Shanghai have natural advantages when it comes to Chinese investors. They speak the same language, live in the same time zone and have cultural relationships.

I suspect that a UK Fatca will affect the island but not as much as the worst case scenario.

There is some flighty money, not always in tax avoidance schemes but hiding away from ex partners, etc, so maybe a fall of 2 to 10 billion in sterling deposits.

James Wiley

So the amount of money in the world has quadrupled in the last five years and yet we can only manage a 1% decrease.

The finance industry is leaving its about time our government accepted this and stopped wasting money.

Ripped off again

What is wrong with Jersey Finance people?

Stable means no change not 1% decline particularly when decline has become a trend.

We pay these people immoral salaries and they cannot even manage basic maths. How do they get these jobs to dispence bull?