The world’s banking system may be in turmoil, but it is business as usual for Guernsey’s banks as the after-effects of the credit squeeze encourage a preference for holding cash and a flight to quality – both of which play to the strengths of the island’s banking system.

Deposits at the end of June were £128.1bn ($228.3bn), an 18.5 per cent increase over the previous 12 months, despite a reduction in the number of banks from 50 to 47.