The Guernsey Financial Services Commission said the total value of deposits held with Guernsey Banks was �119bn at the end of December 2007.

The figures are in line with a steady pattern of growth which began in the spring of 2004.

Low tax and death duties make Guernsey a popular offshore finance centre with financial services making up 32% of total income.

Peter Niven, chief executive of Guernsey Finance, the promotional agency for the island's finance industry, said the figures showed the island was defying the so-called credit crunch.

He said: "The fact that the island is able to post exceptional funds figures at the same time highlights just how our financial services industry is firing on all cylinders."