FICTIONAL: Offshore banking can’t be great because they aren’t really pay the high interest levels they feature. If they could really pay those rates then U. S i9000. banks would try to remain competitive and have the same interest rates. Banks in CA
TRUTH: Examine closely the financial statements of any Circumstance. S. Bank. You will see that their “gross” profits against customer deposit can range from 25% to 40% — but — they have regulations written in stone to limit the interest amount they pays customers on their deposits. The Circumstance. S. banks place their earnings into unnecessary extras and non-productive expenditures like fancy buildings and so forth, while offshore savings facilities don’t do this and share their income with their customers.
FICTIONAL WORKS: Offshore banking isn’t licensed, so you are at risk of losing all money deposited with them.
FACT: The truth is that all country in the free world has restrictions, rules and laws regulating finance institutions and banks. All those regulations, rules, and regulations, nevertheless , are much less restricted than the “protectionist” Circumstance. S. banking regulations, guidelines, and laws and allow the offshore banking industry better possibility to earn much greater profits for his or her buyers and depositors.
FICTION: Overseas banking facilities aren’t covered by insurance by the F. G. I. C.
FACT: A few of the banks are but is not that many. In the event they are, they must abide by the same protectionist banking regulations and guidelines as all the other F. D. I. C. insured banks. However the majority of offshore savings facilities are insured; one way or another.
Depositor insurance programs similar to the F. D. My spouse and i. C. program have recently been established in certain countries, so that the banks in those countries have their deposits insured. Independent insurance companies insure the build up of offshore banking facilities in other countries AND unlike the F. G. I. C., insure totally of the banks deposit; not simply those under $22.99, 000. (By the way, a number of the banks in the U. S. make sure their deposits with separate insurance firms and many banking institutions in the U. T. are not F. M. I. C. insured)
Overseas banking is “self-insured” for the most part which means those banks have a liquidity factor the same to 100% (or more) of the deposits on the books. Those finance institutions have $1 (or more) in liquid assets for each and every $1 held on pay in. Consequently, there is no bank run because they can cover any depositor demand.
Self-insured offshore depositing is actually more secure than F. D. I actually. C. insured U. S i9000. banking. Why? Because the F. D. I. C. insured U. S. finance institutions are permitted to maintain a liquidity factor comparative to approximately 10 percent with their public build up. (Is it any question why more U. T. banks fail each season than in any other country? )
Which kind of bank will you feel more safe having your profit? An offshore consumer banking institution which as one dollar in cash for each and every dollar on deposit, or a U. S. lender which as ten mere cents in cash for each and every dollars that comes up on the deposit statement they give their clients?
FICTION: Overseas banking isn’t as big or strong as Circumstance. S. banking.
FACT: Of the strongest and most significant big banks in the world (in assets), one bank ONLY is found in the United States:
Allow me to share the safest offshore banking companies in the world, in respect to a ranking done in 2007 after analyzing their total assets in US dollars. This rank is compiled from balance sheet information included on AllBanks. org
1 UBS AG Switzerland 2 Barclays UK 3 The Noble Bank of Scotland Group UK 4 Deutsche Lender AG Germany 5 BNP Paribas SA France 6th The lender of Tokyo-Mitsubishi UFJ Ltd Japan 7 ABN AMRO Holding NV Holland 8 Societe Generale Portugal 9 Credit Agricole VOTRE France 10 Bank of America NA USA