BANK deposits in the Island fell by £13 billion (6.2%), from £209.9 billion to £196.8 billion, in the three months from March to June.

This is the third successive quarter that bank deposits have gone down and is also the first time for 12 months that the total has dipped below the £200 billion mark.

Commenting on the latest statistics, the chief executive of Jersey Finance, Geoff Cook (pictured) said that the reason that bank deposits had gone down in recent months was because the larger banking groups were moving their money out of the Island to fund operations in other parts of the world.

‘I have looked at it and it is almost all a result of restructuring,’ he said.

Mr Cook said that underlying customer deposits held in Jersey in fact had been increasing at a faster rate than before, because clients were looking for a safe haven for their money in the current volatile markets.
During the quarter the net asset value of all funds in Jersey also declined, by £1.8 billion, to £244.2 billion, although 37 new regulated funds were set up during the period.