16 Dec

Offshore Banking – Fiction Vs Fact

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. T. banks would try to remain competitive and have the same interest rates. bobibanking

SIMPLE FACT: Examine closely the financial statements of any Circumstance. S. Bank. You will see that their “gross” profits against customer build up can range from 25% to 40% — but — they have laws and regulations written in stone to limit the interest amount they will pay 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 consumer banking facilities don’t do this and share their income with their customers. 

FICTIONAL: Offshore banking isn’t controlled, so you are at risk of losing all money deposited with them.

FACT: The truth is that all country in the free world has rules, rules and laws ruling banks and banks. All those regulations, rules, and laws and regulations, nevertheless , are much less hard to stick to than the “protectionist” Circumstance. S. banking regulations, guidelines, and laws and allow the offshore banking industry better possibility to earn much greater profits for buyers and depositors.

FICTION: Overseas banking facilities aren’t covered by insurance by the F. M. I. C.

FACT: A few of the banks are however, not that many. If perhaps 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 bank facilities are insured; one way or another.

Depositor insurance programs similar to the F. D. I actually. 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. M. I. C., insure totally of the banks build up; not merely those under hundred buck, 000. (By the way, several of the banks in the U. S. guarantee their deposits with indie insurance providers and many banking companies in the U. T. are not F. G. I. C. insured)

Ocean going banking is “self-insured” for the most part which means those banks have a liquidity factor similar to 100% (or more) of the deposits on the books. Those banking companies have $1 (or more) in liquid assets for each and every $1 held on first deposit. Consequently, there is no bank run because they can cover any depositor demand.

Self-insured offshore banks and loans is actually more secure than F. D. My spouse and i. C. insured U. S i9000. banking. Why? Because the F. D. I. C. insured U. S. banking companies are permitted to maintain a liquidity factor comparable to approximately 10 percent with their public deposit. (Is it any speculate why more U. H. banks fail each season than in any other country? )

Which kind of bank do 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. financial institution which as ten mere cents in cash for each and every buck that appears on the deposit statement they give their clients?

FICTION: Ocean going banking isn’t as big or strong as Circumstance. S. banking.

FACT: Of the strongest and major big banks in the world (in assets), one bank ONLY is positioned in the United States:

Allow me to share the safest offshore financial institutions in the world, in accordance to a ranking done in 2007 after analyzing their total assets in US dollars. This rating 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 Standard bank 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 Italy 9 Credit Agricole VOTRE France 10 Bank of America NA USA

2008/2009 UPDATE AFTER THE MONETARY COLLAPSE OF 2008

Germany’s major bank, Deutsche Loan company AG, reported a next quarter lack of about $6. 3 billion. A 12 months earlier, the bank published a profit of about $1. 3 billion (1 billion euros), Bloomberg reported.

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