Total bank deposits in Guernsey dip to six-year low of £97bn
Thursday 29th November 2012, 11:00AM GMT.
TOTAL deposits held with Guernsey banks have fallen below £100bn for the first time since 2006.
A 6% decline in the third quarter of the year saw the value dip from £103.1bn to £96.9bn, more than 15% down on a year ago.
‘Global deleveraging continued to influence the Guernsey aggregate banking figures and total deposits and total assets and liabilities resumed their downward trend,’ said Philip Marr, director of banking at the GFSC, pictured.
‘Difficult economic conditions, reduced inter-bank activity and measures to conserve capital by global banks are working together to produce further balance sheet contraction across a range of licensed banks.’
Mr Marr said the balance sheet was unlikely to pick up over the next few months.
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I have asked before and never received any answer. Perhaps you clever people in finance could answer it.
Where is, and how big is the building with £97 billion in it ?
And what happens if everyone wants to withdraw there money ?
Does Guernsey end up like Norther Rock ?
Oh I forgot its not real money is it. Just a figure entered in a spreadsheet.
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You are right, it is basically just paper transactions mostly tied up in pension funds and trust.
If everybody wanted to withdraw their money today all the banks would be in trouble as they lend our money and invest it so as to make money so as to give us “free” banking. Banks are only required to hold 5% (I think) of their funds in available cash.
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Tony Ventress
You clearly have no idea whatsoever about what the banks here actually do!
If you think that lots of islanders have accounts at the vast majority of the Guernsey banks then you’d be seriously wrong. For most you need £500k plus to open account, sometimes a lot more. They are owned by parent banks elsewhere who stand behind their obligations here. They are not all like Landsbanki!
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Ok Patrick so what happens when these people with accounts of £500k + decide to withdraw there money from the island ?
Or are forced by thier home nation to return thier money to native banks so tax can be applied at home.
I admit to not understanding banking, but to say you have a spreadsheet with £97 billion on it does not IMHO make you a wealthy island. It all seems to be a little tacky to me. Abit like saying I am wealthy, so therefore I am wealthy. There appears to be no actual substance to it.
Where and what is the real wealth/money ?
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