Offshore Banking: An Analysis of Micro- and Macro-Prudential Issues
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Summary:
The paper takes a closer look at offshore banking—a pervasive practice that has played a role in recent crises. Offshore banking is an increasingly attractive alternative to the sometimes heavily regulated financial markets of emerging economies. From a microeconomic vantage point, offshore banks seem to exploit the risk-return tradeoff by being more profitable than onshore banks, and in many instances also more leveraged. Risks stemming from offshore activities may be easily transmitted onshore with systemic consequences. Current prudential and supervisory frameworks are broadly adequate for risk management if effectively and universally implemented.
Series:
Working Paper No. 1999/005
Subject:
Banking Consolidated banking supervision Deposit insurance Financial crises Financial institutions Financial regulation and supervision Financial services Foreign banks International banking Offshore financial centers
English
Publication Date:
January 1, 1999
ISBN/ISSN:
9781451842166/1018-5941
Stock No:
WPIEA0051999
Pages:
56
Please address any questions about this title to publications@imf.org