The external business of monetary financial institutions operating in the UK fell in the second quarter of 2010, according to the Bank of England.
Data in the Bank's Q2 2010 report shows that external liabilities of monetary financial institutions fell by $95.7 billion (£62 billion) in the period, with the largest fall in deposits reported by Offshore Centres and driven by a decrease in deposits from Jersey and Singapore.
In addition, liabilities to developed countries decreased, due to falls from Luxembourg and Germany, although liabilities to developing countries increased, driven by a rise in deposits from China and South Korea.
The Bank added: "During Q2 2010, external claims of monetary financial institutions operating in the UK rose by $31.0 billion. The rise in claims was driven by developed countries, more than accounted for by increases reported against the Netherlands and Germany."
According to the institution, claims on developing countries also rose, with the largest increase in claims reported against Taiwan, while claims on offshore centres decreased, driven by a fall in claims reported against the Cayman Islands.
The news comes after it was revealed that the EU has reached agreed reforms to the way in which financial services firms are supervised.
Posted by James Harrison