During the same period, there were 658 company incorporations, giving the Channel Islands jurisdiction some 33,037 “live” companies on its register, the highest number it has had there since 2011, the data, released by Jersey Finance, shows.
Geoff Cook, chief executive of Jersey Finance, which represents the interests of the island’s financial services industry, noted that in addition to the continued weakness of sterling in the quarter ending on 30 June, the drop in total bank deposits “was in part due to rationalisation of business across the Crown Dependencies, a change that was not unexpected as it followed on from rationalisation effects seen in the first quarter of 2013”.
“For the funds sector, the total number of funds remained stable, while the decrease in the net asset value of funds under administration can be linked to the world-wide fall in the price of gold and other commodities," Cook added.
"As part of a diversified portfolio approach, Jersey is home to a number of funds that invest in these sectors, and the figures at the end of Q2 reflect the overall performance of individual markets."
The investment management sector also reported a stable performance, showing a "modest" 1.1% decrease, Cook went on, adding: "Overall, the figures highlight the gradual nature of global economic recovery and the need to maintain a strong focus on managing the costs of doing business in Jersey, [while] continuing to develop new business opportunities, especially from fast growing international markets.”
Among the headline numbers contained in the latest Jersey data, which was provided to Jersey Finance by the Jersey Financial Services Commission, for the three months ending 30 June:
- The total value of banking deposits held in Jersey decreased by £4.3bn to £150.8bn, from £155.1bn
- The net asset value of funds under administration decreased by £4bn to £201.3bn, from £205.3bn; the total number of regulated funds decreased by 58, or 4%, to 1,337 from 1,395 over the same period. The total number of unregulated funds increased by 5, or 2.7%,to 189 from 184
- The value of total funds under investment management decreased by £200m to £22.5bn, from £22.7bn
- The total number of live companies increased to 33,037, as a result of 658 incorporations, which outnumbered those which ceased to be active by 247
As reported, government officials in Jersey have held urgent talks with their counterparts in Paris after it emerged that Jersey had been placed on an official French blacklist of "uncooperative" tax jurisdictions last month, along with Bermuda and the British Virgin Islands. The inclusion came as a surprise to many, as Jersey has had some success in recent years in distancing itself from the "tax haven" sobriquet.
Earlier this summer, Jersey officials, including Cook, called attention to a Capital Economics report that showed Jersey responsible for significant amounts of inward investment into the UK, and consequent support of around 180,000 British jobs.
To read Jersey Finance’s 15-page "Quarterly Report, Period Ended 30th June 2013", click here.
