I. What is an offshore financial center

Business division's research

The European money market is composed of many financial centers distributed in various regions of the world. In these financial centers, European monetary business is relatively concentrated, and European monetary business is the main offshore financial activity, so it is called offshore financial center. Classification of offshore financial centers:

1. From the functional point of view, it can be divided into functional centers and bookkeeping centers

(1) Functional centers are centers that focus on many financial institutions such as banks and are centers that engage in specific deposit and lending business. The function center is divided into fund center and collection center.

the l fund center mainly absorbs international hot money and then lends it to the fund demanders in the region. For example, in Singapore, its funds come from all over the world, and the lending targets are mainly ASEAN member countries and countries in the Asia-Pacific region.

l the collection and distribution center mainly absorbs the surplus funds in the local area and then lends them to the fund demanders all over the world. Bahrain, for example, mainly absorbs huge petrodollars from oil exporting countries in the Middle East and then lends them to other parts of the world.

(2) Bookkeeping centers, also known as nominal centers and tax haven centers, do not engage in specific financing business, but only engage in transaction procedures such as transfer or registration of loan investment and financing business. Most of these centers are located in the Caribbean, such as Bahamas, Cayman and Bermuda, which are exempt from relevant taxes and are ideal tax havens for banks. Some branches of major international banks in these places don't even have a staff member, and some just have a brand name. In fact, they just set up a ledger account, the so-called shell branch, in order to avoid taxation and control.

2. From the relationship with domestic financial business, it can be divided into integrated center and separated center

(1) Integrated center is a mixture of internal and external financial business, and the market is open to both residents and non-residents. The characteristics of this kind of center are: ① the currency of the transaction is other currencies excluding the currency of the country where the market is located; (2) The business scope is relatively broad, and market participants can operate onshore financial business and offshore financial business such as European currency at the same time; ③ There is no strict application procedure for operating offshore financial business. London and Hong Kong belong to this type.

(2) The separated center is a strict separation of internal and external financial services, and only non-residents are allowed to participate in offshore financial services. The characteristics of this kind of center are: ① European currency business includes transactions between non-residents of the currency of the country where the market is located; (2) strictly separate accounts for overseas currencies and domestic currencies in management. New york's international banking facilities, Tokyo's overseas special account and Singapore's Asian currency unit all belong to this type.

example 1: mainly concentrate the extra foreign currency in the region and then lend it to the fund demanders all over the world. This is: (b)

offshore financial center:

A. Centralized center

B. Receiving center

C. Fund center

D. Separated center

Example 2: (26 test questions)

The following features that do not belong to the separated offshore financial center are (a) < European currency business includes transactions between non-residents in the currency of the country where the market is located. D. Strictly separate accounts for overseas currency and domestic currency in management. < P > II. What is an offshore financial center? < P > An offshore financial center refers to a banking system formed by local banks and foreign banks with non-native people as trading partners. The function of offshore financial center: to provide an opportunity for the economy to monopolize financial resources and distribute them fairly, thus driving economic growth; The offshore financial center itself has limited demand for investment, and its role is to allocate funds.

The cost advantage of offshore financial centers creates competitive pressure on other credit markets, including tax competition, reducing the financing cost of onshore markets and government taxes; At the same time, due to the lower cost of supervision, operation and capital, the deposit interest rate of offshore financial centers is higher, which brings wealth appreciation to investors.

when establishing transnational joint ventures with companies from other countries, some companies promote transnational investment because of concerns about high taxes and books in both countries.

As an offshore financial center for companies to cope with unexpected market shocks, such as sudden and large fluctuations in foreign exchange rate, take eurodollar market as an example. It is a financial center and a free financial market.

third, what do you mean by offshore?

Chinese translation: leaving the coast

Introduction: The word "offshore" comes from the English word offshore, which symbolizes that marine vessels leave the port for ocean trade.

offshore RMB business refers to RMB deposit business outside China. The business in which both parties are non-residents is called offshore financial business.

Offshore finance refers to the financing activities carried out by financial institutions located in a certain country, which have little connection with its financial system and are not controlled by its financial laws and regulations. For example, a trust and investment company is headquartered in the Bahamas, but its business activities are to absorb US dollar funds from European residents or other non-US residents, and then put these funds into European residents or non-US residents, and the company is engaged in offshore financial activities. Strictly speaking, offshore finance is also the financing that is not regulated by the domestic banking law of the authorities, regardless of whether these activities take place inside or outside China. For example, the international banking facilities (IBF) in the United States and the business activities in the offshore financial market in Tokyo all belong to offshore finance.

offshore banks: also known as offshore units, are banks or other financial organizations located in offshore financial centers. Its business is limited to exchanges with other overseas banking units or foreign institutions, and it is not allowed to operate business in the domestic market.

offshore financial market: also known as offshore financial market. Take the form of isolation from the domestic financial market, so that non-residents can raise funds and use funds without being affected by the tax and foreign exchange control and domestic financial regulations of the host country, and can conduct free transactions.

the development of offshore financial business began in the 196s. At that time, in order to avoid domestic restrictions on bank development and financing, some multinational banks began to operate deposit business in currencies other than the host country's currency in specific international financial centers. In the 197s, offshore deposits denominated in US dollars increased sharply. By the 198s, with the establishment of international banking facilities and offshore financial market in Tokyo, offshore financial business also included the local currency. The difference is that this kind of currency deposit is limited to non-residents.

4. What does offshore finance mean?

OffshoreFinance refers to the financing activities carried out by financial institutions located in a certain country but having little connection with its financial system and not controlled by its financial laws and regulations.

an offshore bank, also known as an offshore unit, is a bank or other financial organization located in an offshore financial center. Its business is limited to exchanges with other overseas banking units or foreign institutions, and it is not allowed to operate business in the domestic market.

offshore financial market is also called offshore financial market. Take the form of isolation from the domestic financial market, so that non-residents can raise funds and use funds without being affected by the tax and foreign exchange control and domestic financial regulations of the host country, and can conduct free transactions.

The main reasons for the rapid development of offshore financial business are as follows: offshore banks do not need to hold reserves, and their operating costs are lower than those of domestic banks; Offshore banks are not bound by the interest rate ceiling, that is, the interest rate they pay to depositors can be higher than that paid by banks to domestic depositors, and they can pay interest on demand deposits; Offshore finance enjoys preferential tax treatment.

characteristics of offshore finance: the difference between the offshore financial market and the traditional international financial market. From the nature of the market, the traditional international financial market is essentially a domestic market, because it is controlled by the laws and regulations of the country where the market is located, and it deals in the currency of the country where the market is located, and the interest rate system also implements the interest rate of the country where it is located. The offshore financial market is a stateless and completely international market, which is not controlled by any country's monetary laws and regulations. It mainly deals in overseas currencies and implements a unique international interest rate structure. From the perspective of lending relationship, the lending relationship in the traditional international financial market is between domestic and foreigners, that is, domestic funds provide loans to foreigners in their own currencies, which is characterized by the net export of domestic capital; The lending relationship in the offshore financial market is between foreigners, that is, providing foreign currency deposits to non-residents with non-resident deposits, which is characterized by overseas sources of funds.