The figures for the second quarter of 2009 continue to show a reduction in the size in the value of bank deposits and funds in Jersey, as a result of the fall out from the global economic crisis.
Bank deposits have decreased by £21.7 billion to £174.2 billi0n but the decline is largely as a result of currency fluctuations rather than a substantial loss of banking business. The statistics collated and prepared by the Jersey Financial Services Commission for the period ending June 30 2009, also show that the number of funds has fallen by 91 from 1,413 to 1,322 and the net asset value of funds under administration was £198.1 billion, down from £215 billion in the first quarter.
The headline figures from the statistics are as follows:
- Banking deposits decreased by £21.7bn during the second quarter of 2009 from £195.9bn to £174.2bn.
- The value of funds under investment management decreased by £0.5bn from £18.1bn to £17.6bn during the second quarter of 2009.
- The Net Asset Value (NAV) of funds under administration decreased by £46.1bn during the last twelve months from £244.2bn to £198.1bn. The total number of funds decreased by 85 from 1,407 to 1,322 during the last 12 months.
- Company formations for Q2, 2009 were down 33.3% compared to Q2 2008. The total number of live companies on the register decreased by 561 during the last 12 months from 34,372 to 33,811 companies.
Geoff Cook commented:
‘Given the tendency around the world to pay down debt it is perhaps not surprising that we have seen a further reduction in bank balances, however when currency fluctuations are accounted for the real reduction is in the order of 3%. The introduction of a depositor compensation scheme continues to be a key imperative to maintain Jersey’s attraction as a leading international banking centre.
‘More widely during the second quarter of 2009, the main markets have seen an increase of approximately 30%, providing substance to the increasing numbers of expert commentators suggesting that there are early signs of stabilisation in the global economy, giving grounds for cautious optimism. In the early stages of the third quarter there are indications within the funds sector in Jersey of an increased level of instruction, which would support this outlook, although this is more likely to be reflected in the fourth quarter statistics.’
Mr Cook added that Jersey’s Finance Industry was weathering the economic difficulties with some resilience but there was no room for complacency. ‘Businesses have to continue to review and promote the breadth, depth, quality and reach of Jersey’s offering.’
For further information, please contact Geoff Cook, Chief Executive, Jersey Finance Limited, on tel. +44 (0) 1534 836000 or e-mail firstname.lastname@example.org