HIGH street banks have revealed healthy profit margins for the first six months of this year. However, figures released last week also showed increases in provision for bad debts.

Analysts have blamed that on the increase in the number of personal insolvency cases in the UK.

Alan Bougourd, deputy chairman of the Association of Guernsey Banks, did not think the increase held any local significance.

‘With the economy in its current state, I’d have thought there would not be any impact on local banks,’ he said.

However, he added that the association took the issue of consumer credit extremely seriously.

‘We are working as part of the Guernsey Financial Literacy Advisory Group, which is in place to help people with consumer issues,’ he said.

‘We are not aware of anything that would overly concern us, although we are aware that consumer credit can be an issue for individuals.

‘The Citizens Advice Bureau is also aware of these issues and is taking it seriously.’