The Role of offshore Centers in International Financial Intermediation

Cassard, Marcel

doi:10.5089/9781451946789.001

Cited by 23 publications

(10 citation statements)

References 10 publications

(2 reference statements)

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“…Throughout the 1960s and the 1970s, the Eurocurrency market grew at a remarkable pace. The shift of financial activities to Eurocurrencies gained considerable momentum after 1966, when U.S. money market rates rose above the interest rate ceilings on dollar deposits allowed by Regulation Q, 23 resulting in a credit crunch that, in turn, forced U.S. banks to seek funds in the Eurodollar market (Cassard, 1994). During 1966-77, the gross size of the Euromarket -that is, the sum of all Eurocurrency liabilities, including interbank deposits-grew 17fold, from US$18 billion at end-1966 to US$310 billion at end-1977 (Dufey and Giddy, 1978).…”

Section: Discussionmentioning

confidence: 99%

Concept of Offshore Financial Centers

Zoromé¹

2007

IMF Working Papers

110

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This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate. This paper proposes a new definition of Offshore Financial Centers (OFCs) and develops a statistical method to differentiate between OFCs and non-OFCs using data from the Coordinated Portfolio Investment Survey (CPIS), the International Investment Position (IIP), and the balance of payments. The suggested methodology identifies more than 80 percent of the OFCs in the study sample that also appear in the a priori list used by the IMF to conduct its OFC assessment program. The methodology distinguishes OFCs based strictly on their macroeconomic features and avoids subjective presumptions on their activities or regulatory frameworks. The study also identifies three new countries meeting OFC criteria.

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Section: Discussionmentioning

confidence: 99%

Concept of Offshore Financial Centers

Zoromé¹

2007

IMF Working Papers

110

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“…These include: (1) more convenient fiscal regimes which lower explicit taxation and increase net profit margins; (2) convenient regulatory frameworks that reduce implicit taxation also increasing profit margins; (3) minimum formalities for incorporation; (4) adequate legal frameworks that safeguard the integrity of principal-agent relations; (5) proximity to major financial centers; (6) the reputation of the particular OFC; and (7) complete freedom from exchange controls. 5 See (Cassard 1994). 6 Gross flows intermediated by offshore banks residing in a particular country are recorded in that country's capital account.…”

Section: An Overview Of Offshore Bankingmentioning

confidence: 99%

Offshore Banking: An Analysis of Micro- and Macro-Prudential Issues

Errico¹,

Borrero²

1999

IMF Working Papers

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The paper takes a closer look at offshore banking-a pervasive practice that has played a role in recent crises. Offshore banking is an increasingly attractive alternative to the sometimes heavily regulated financial markets of emerging economies. From a micro economic vantage point, offshore banks seem to exploit the risk-return tradeoff by being more profitable than onshore banks, and in many instances also more leveraged. Risks stemming from offshore activities may be easily transmitted onshore with systemic consequences. Current prudential and supervisory frameworks are broadly adequate for risk management if effectively and universally implemented.

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“…The regulatory environment of offshore centers has evolved from the very beginning of this phenomenon as a financial market location, offering financial institutions and their customers specific services that could not be found in this configuration in the competing traditional IFCs. Thus, the economics of OFCs can only be understood in the context of dynamic competitive interaction with other specific locations (a concept that is also central to the IMF-working paper WP/94/107 by Cassard, 1994).…”

Section: Offshore Financial Centers: Concept and Manifestations Genermentioning

confidence: 99%

The impact of offshore financial centers on international financial markets

Dufey¹,

Bartram²

1997

The Int. Exec.

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Offshore centers have come to play an important role in the institutional structure of international financial markets. The article identifies two dimensions of dynamic competition that are relevant for an analysis of the offshore center phenomenon. First, there is competition between the offshore centers and one or more domestic financial markets. Second, there is dynamic competition among the offshore centers. The system of offshore centers generates a three‐tier structure of international financial markets: domestic, foreign traditional, and offshore markets, both with respect to financial intermediaries as well as securities markets. This structure constitutes the institutional base for trends in the international financial markets which result in a process of increasing globalization.

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The Role of offshore Centers in International Financial Intermediation

Cited by 23 publications

References 10 publications

Concept of Offshore Financial Centers

Concept of Offshore Financial Centers

Offshore Banking: An Analysis of Micro- and Macro-Prudential Issues

The impact of offshore financial centers on international financial markets

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