Private Banking / Offshore Banking

Offshore banking is a term used for places, many of them islands, whose very liberal banking laws attract deposits in Euro currency. Euro currencies, including Euro dollars, are deposits in currencies other than the currency of the country in which the deposit is held.

Foreign bank branches in these islands, which are called offshore financial centres, merely act as administrative or accounting units for the Euro currency transactions, which originate from their Head Offices or other branches overseas. The transactions are merely entered into the books of the branches in the host country as a deposit or a loan, on the advice of Head Office or other branches.