What are the categories of offshore banks?

1. Offshore banks with a full license ("Unlimited" class B banks). They get a license from the host country to enable them to engage in banking and / or trust operations outside the host country and have the right to serve customers outside the country in which they are located.

2. Offshore banks with restricted license ("Limited" Class B banks). Receive the same license, except that they can only deal with those foreign persons that are specified in the license. As a rule, they are the easiest way to create.

3. Offshore managed (administered) banks (banks, "without personnel"). They operate on the basis of a general license of the bank on the basis of a special agreement between him and the owner of an offshore bank. To create such a bank needs a license. Basic bank carries out the administrative functions for the management and operation of the bank patronized. Offshore Bank provided a separate link, the registered office.

4. "Representation" as the banks are organized and licensed in one country and get a license from a second country for a mission. They can not do business in the latter country, but they can do business with any other country. Using this type of bank provides an extra layer of insulation.

5. Certain functions are allowed to carry out banking and credit facilities to some type of bank.

Offshore banks also differ in the magnitude of the required paid-in share capital and an annual fee that is payable by the host country.

Control over financial operations and condition of the banks the central bank carries out the state. But the degree and nature of control, as well as the conditions for issuing licenses in a variety of different offshore.

There are a number of relatively young banking jurisdictions, where the conditions controlling the activities of offshore banks is minimal. These include Vanuatu, Nauru, Western Samoa, Cook Islands and some others. When a banking institution in which there are no requirements for minimum capital, nor an effective oversight body. Objectives. Most often, offshore banks are established to achieve the following objectives:

1. Gaining access to the international network of correspondent accounts. This allows the system to engage in informal networks of the banking community to establish partnerships with major banks and thus gain access to their financial infrastructure.

2. Provision of suitable conditions for registration of foreign commercial bank. In most countries of the world extremely high requirements for banks' capital and reputation, there are protectionist barriers.

3. Money management and maintenance of a limited number of customers. This is usually subsidiaries of the parent company and certain groups of companies that have entered into a financial pool and the firm's foreign affiliates (including other offshore companies).

4. Profitable investment of funds on deposit to the world financial markets. Offshore banks may conduct credit operations and to provide lending to groups of companies, as well as profitable business projects, third-party. For offshore bank can enter the international market for syndicated (joint) credit.