Offshore Offshore financial center In general, national financial institutions only in local currency deposit and loan business, but after World War II, the world&#39;s financial institutions engage in currency other than foreign currency deposits and loans, business gradually on the rise, some of the country&#39;s financial institutions become the world currency Centre for deposits and loans. Any country, region and city, where the main foreign currency transactions (or savings and loan) subject to non-residents (Enterprise) for the trading partners, both local banks or foreign banks formed by the banking system, can be known as offshore financial Centre (offshore finance) In the Eurodollar market, for example, it is a very typical offshore financial center, it is a free trade, free from control of the international financial markets. Offshore financial business is primarily wholesale banking business, a large amount of deposits and loans, trading partners are usually banks and multinational companies, their business is usually the introduction of foreign capital, then capital loans to foreign countries, the so-called two out. Individual investors can also invest through institutions. Strictly speaking, the offshore financial authorities of the country where that is not subject to the control of the domestic banking law and the use of two sources of borrowed funds abroad, to non-residents of foreign enterprises and institutions to target foreign currency trading activities of financial intermediation, whether these activities occurred within or outside. Such as the United States, international banking facilities (IBF) and the Tokyo offshore financial markets business activities, are offshore. ? Offshore Banking Also known as offshore offshore banking units, offshore financial center is located in a bank or other financial organizations. Its business only with other units of foreign banks or foreign enterprises, institutions contacts, but not allowed to operate in the domestic market. ? Offshore financial markets The development of offshore financial services began in the 20th century 60s. At that time, a number of international banks in order to avoid the development of domestic banking and financial intermediation constraints, beginning in particular international financial center operates a currency other than currency Deposits. 70&#39;s, the offshore dollar-denominated deposits increased drastically. 80&#39;s, 随着 Tokyo offshore international banking facilities and financial markets Jian Li, the country where the offshore financial Ye Wu Jiang currency also came, except that the currency deposits and loans Zhezhong object is limited to non-resident enterprises and individuals. The rapid development of offshore financial business is mainly due to: offshore bank do not have to pay the reserve, its operating costs lower than the domestic banks, offshore banks from interest rate cap constraints, that is their right to pay depositors interest rates may be higher than the bank interest rates paid by domestic depositors, but also to pay interest on demand deposits, offshore financial enjoy tax benefits. Offshore financial markets was the rapid development since the 70s, from London, Paris, Frankfurt, ﹑ Zurich, Luxembourg and other European regions extended to Singapore, Panama, the Bahamas, Nassau and other places. Since the 80s, but also in New York, Tokyo and other places the emergence of new offshore financial center, to the 90&#39;s, the offshore financial markets around the world. ? Offshore financial markets generally, there are three types of 1. London type are &quot;natural&quot; market. London offshore market began in the late 50s, both as business banking, and securities business. In addition to non-residents are allowed to operate freely in foreign exchange, financial business, the absorption of deposits without paying the required reserve. In the past, this type of market operation due to foreign exchange control restrictions, but distinct from the domestic business. However, since October 1979 after the abolition of exchange controls on foreign exchange management and financial business equal treatment of domestic financial services, &quot;offshore&quot; is itself, there were variations, London offshore market has actually become both domestic and offshore business &quot;outside-in-one&quot; financial markets. Hong Kong since the abolition of exchange controls in 1972 after the Asia-Pacific region has gradually evolved into a major London-based offshore market. ? 2. New York, the key characteristic of type &quot;artificial creation&quot; and &quot;internal and external separation,&quot; and no securities trading. ?December 1981, the U.S. Federal Reserve agreed to establish international banking facilities (also known as International Bank of convenience), the New York rapid development of offshore financial services. Its main trading partners are non-residents. Financing can only absorb foreign residents, foreign banks and deposit companies, but operate international banking facilities, foreign banks are not limited to, any U.S. depository institutions and foreign bank branches in the United States may apply for start-up. Deposits are not in the United States banking regulations on the deposit reserve ratio and ratio limits. Loans must be used outside the United States. The &quot;facilities&quot; can be used include any currency, including U.S. dollar denominated. The U.S. dollar is the most important international currency, while the offshore market, the major trading currencies U.S. dollar in Europe, so the offshore market in New York in national currency as a major trading currency. Open in 1986 Tokyo offshore market is of this type. ? 3. Bahamas-based only and not substantive business account offshore financial center, also known as &quot;evasion-type&quot; offshore market. These markets is actually a &quot;tax evasion in Hong Kong.&quot; Experienced in some countries or areas of financial services can avoid bank profit tax and business tax, while the local branches of the cost and start-up costs than London low, offshore financial markets have opened in these areas. Nassau, Bahrain, the Cayman Islands and all other places is such a case. Avoidance-based offshore financial centers, generally located in the scenic islands and ports, political stability, tax incentives, not financial. This is the sense of what we usually offshore financial center. In recent years, some of the world countries and regions such as Isle of Man (IOM) and other legal means have to try to figure out and cultivate some of the special economic zone relaxed to allow the international community in its territory, the establishment of an international business company, the general said these areas as offshore jurisdiction or as offshore jurisdictions. The so-called offshore companies in offshore jurisdictions that generally refers to the establishment of limited liability companies or international business companies. The relatively well-known offshore financial centers Isle of Man, the Cayman Islands, the Bahamas, Bermuda, Samoa, Anguilla Island, Caribbean Sea and so many offshore financial centers. Compared with the general Ltd. offshore company, the main difference in the tax. With the commonly used volume of business or the practice of tax profits, offshore jurisdictions for offshore companies to charge the Government only the annual management fee, in addition, will not levy any taxes. In addition to tax incentives, almost 所有 offshore jurisdictions expressly provides: Gong Si&#39;s Gudong information, Guquan ratio Shouyizhuangkuang Deng, enjoy the right to confidentiality, such as shareholders Buyuan Yi, can not to make Pilu. Another advantage is that almost all international banks have recognized these companies, such as the United States, Chase Manhattan Bank, Hong Kong, HSBC, DBS Bank, the French Credit Agricole Bank. &quot;Offshore&quot; companies can open accounts in banks in the financial operation extremely easy. General kind of &quot;offshore&quot; regions and countries and developed countries have good trade relations. Therefore, offshore company owned by many large multinational companies and high worth individuals often use the financial instruments. ? The characteristics of offshore financial markets (1) Business activities are rarely subject to regulatory control, simplicity, low tax or tax-free, efficient; (2) the offshore financial market currency is the foreign currency loans, borrowers are free to choose currency. The relationship between the market borrowing of foreign lenders and foreign borrowers relations, these lending relationships, involving almost all countries of the world. (3) offshore financial market interest rates in general, the deposit interest rate slightly higher than the domestic financial market, interest rate is very small, more attractive and competitive.