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UK Offshore Banking PDF Print E-mail
Friday, 05 December 2008 15:53

UK Offshore Banking

Deposit-takers
In a trend which continues year on year, Jersey’s banking sector has grown once again, according to figures released by the JFSC.

Although Jersey’s bank deposits declined from £109 billion to £107.4 billion between June and September 1999, this decline of £1.06 billion is more than accounted for by the effect of the continuing strength of sterling, which has reduced the sterling equivalent of non-sterling deposits. Since the island’s total banking deposits broke through the £100 billion mark earlier this year, confidence has continued to strengthen the Jersey banking institutions.

UK Offshore Banking & Barclays

 Among the constituents of the island’s considerable banking network are international offshoots of Barclays, Lloyds-TSB, Royal Bank of Scotland, Bank of Scotland and Bank of Ireland. In total 77 banks operate from the island.
Ranald Caldwell at Bank of Scotland comments: “There is general optimism in the Jersey banking sector now that we’ve more or less weathered the storm in terms of defending our tax position. One of the most significant developments in Jersey over the past four or five years has been the increase in large banks. Not only has that forced banks to be more competitive but it has widened the choices for investors.”

In terms of the deposit-takers, 1999 has been a challenge, however. Low interest rates across the board have meant that giving investors an attractive deal has been tough. However, most have risen to this challenge and a plethora of investment and savings products have been launched in an attempt to keep the market buoyant.

UK Offshore Banking - Structured Products

“There has been an increasing emphasis on structured products, a factor which has been driven largely by customer demand,” says Caldwell, “20 to 30 per cent of our client base over 1999 has turned to longer- term fixed rate or index tracker products in the light of low interest rates. We have launched a range of one, two, three and four year bonds on fixed rate and stepped rate basis to satisfy the demand.”

Caldwell highlights his bank’s Save & Invest product as its most successful response to low interest rates. Save & Invest offers guaranteed rates of 1.5 per cent above the base rate over a period of two years, as well as access to a Scottish Provident International’s life assurance product - the Balanced Managed Fund. It is currently holding deposits in excess of £20 million.
Jersey-based deposit-takers remain among the most consistent in the offshore centres. Sun Bank Offshore has been offering around 5.3 per cent on its sterling accounts, while Abbey National provides a competitive 4.9 to 5 per cent rate on its dollar-denominated accounts.

 

 

For more relevant news items and magazine articles please click the links below:

 

Article: Guernsey - full of far eastern promise

Article: Internaxx Launches The Next Generation of Offshore Fund Supermarket

News: Tax Haven Draft Bill Would Double Offshore penalties

 

   
 

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