Jersey just keeps on sinking, rapidly:
Bank deposits in Jersey fell during the second quarter of 2010 as global austerity measures affected the world’s financial markets.
The level of deposits held in local banks fell by six per cent in the three months to the end of June to £166.9 bn.
The drop was £10.7 bn. The value of funds under administration fell by 2.5 per cent from £180.5 bn to £175.9 bn — a drop of £4.6 bn. The total number of funds fell from 1,320 to 1,287.
Jersey can claim this is due to the recession — but this is their whole economy we’re talking about here. No economy can survive this level of decline for long.
My prediction that the place will go bust is looking increasingly correct as time passes.
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£160 billion – £180 billion deposits.. . and the EU savings tax in Jersey was levied on £10 billion plus another £7 billion voluntary disclosure. That is £17 billion in total. That’s 10% of the deposits. And what about bonds and funds and other fixed income investments… and the like s of Rupert will say people not evading the EU savings tax in Jersey. Pull the other one… Oh that’s right.. these are deposits by wealthy Sheiks and Asian Entrepreneurs 🙂
Mark
So 90% of the deposit base is held either for the benefit of non-EU residents, so that the EUSTD is not applicable, or alternatively in vehicles which the EUSTD does not cover (remember that the EU sets the rules, not Jersey). Until the amended EUSTD is extended to companies, trusts etc, neither you nor I can reliably conclude anything from these statistics. You clearly have your suspicions, but whether the extended EUSTD will cover 10% or 90% of those remaining deposits, or whatever figure in between, is nothing other than pure speculation. Only time will tell.
My guess? About 30% might become reportable under the EUSTD. But I would stress that’s nothing other than gut feeling.
in Guernsey, via the eminent Press..
http://www.thisisguernsey.com/2010/09/08/economic-future-not-bright/
Mr Moulton ahems
http://www.thisisguernsey.com/2010/09/06/bank-deposits-drop-almost-2bn/
The full article stated that there may be banks and FinBiz leaving
and then someone says something sensible
http://www.thisisguernsey.com/2010/09/09/social-needs-ignored-in-tax-document/
and there’s no option to comment.
Still.
Great strides are being made to woo the Indian and Chinese tax dodgers to prop Guernsey up.
It feels great