IoM 2017 banking data show further decline in deposits, banks

IoM 2017 banking data show further decline in deposits, banks

Deposits in Isle of Man-licensed deposit-taking banks fell by £7.03bn, or 16.41%, to £35.81bn in the year to the end of December, as the number of institutions fell by three to 16, the Isle of Man Financial Services Authority has reported.

The decline in the fourth quarter was 3.53%, or £1.31bn, the IoM FSA said, in a statement on its website.

Among the banks that have surrendered their banking licenses recently have been Permanent Bank International Ltd, in December; Nationwide Building Society, in January 2018; and Merrill Lynch Bank & Trust Co (Cayman) Ltd, in February, the authority noted.

In a statement on its website, the Isle of Man FSA noted that its latest deposit data included intra-group borrowing that “is not capital in nature”. It also pointed out that its new Alternative Banking Regime came into force on 1 August 2016, but that as of 31 December, no so-called Class 1(2) licences, which the Alternative Banking Regime provides for, had yet been issued. This type of licence is for “non-retail/restricted deposit-taking” institutions.

As reported,  this new regime was brought in to provide two additional types of banking licence on the island, in order to encourage new banks to open on the island and to otherwise help to support its banking needs.