Regulation: an aid to development

The purpose of offshore finance lies in regional development. A small jurisdiction, having no natural resources and too small to benefit from economies of scale, may decide to make its regulation attractive to expatriate business activities. Offshore banks, as defined by the IMF 2000, are banks whose business is "foreign" on both sides of the balance sheet. Offshore banking is the most prominent aspect of offshore finance, and typically allows foreign banking customers to benefit from minimal levels of tax and greater confidentiality than in high tax "onshore" countries. The success enc...