Island bank deposits fell to £140bn at end of 2013

Deposits held in island banks fell to £140bn in 2013, according to the Jersey Financial Services Commission's (JFSC) latest annual report.

Deposits peaked at £220bn in 2008, meaning the latest result reflects a 36% fall in five years.

Mark Sumner, banking director at the JFSC, said the financial crisis, low interest rates and a strong British pound were to blame.

He also said some banks had left the island.

"The number of bank licences has fallen from 42 to 34 over the last 12 months. Some of that is to do with banking groups consolidating within Jersey but there have been closures," said Mr Sumner.

"An awful lot of deposits in Jersey are held in US dollars and euros, so if the pound strengthens, which it has recently, then the value of those deposits, in sterling terms, falls."

The report also revealed that JFSC commissioners were awarded a 5% pay rise in 2013, although director general John Harris's salary remained at £293,000.

Island companies administered £190bn of funds last year, an improvement over the previous year, while assets held in Jersey trusts were estimated to be worth £500bn.

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