Globalization trends of offshore banking development

Glib Turolyev

E-Forum Working Papers, 2020, vol. 10, issue 4, 153-160

Abstract: Global conditions for the functioning of the world banking system lay qualitatively new conditions for the accumulation and redistribution of financial capital in different regions and sectors of the world economy, as well as the transformation of aggregate savings of economic agents of different countries into global investment capital. A special disposition in the global banking architecture is occupied by offshore banking, which in recent decades has become an established and integral component of the global financial market. Covering the operations of banking institutions, located in offshore jurisdictions, offshore banking provides businesses with a significant reduction in the tax burden, high confidentiality of commercial transactions and reliable preservation of capital. At the same time, the deepening of international specialization and industrial cooperation, the fragmentation of global flows of goods and capital resources provide economic entities with ample opportunities to use the services of offshore banking in order to use special systems of corporate law. The article reveals the scale and structural dynamics of offshore banking in recent decades. The modern tendencies of development of offshore banks have been characterized with emphasis of research interest on processes of system technologization and dynamic distribution of fintech and artificial intelligence, penetration into this sector of technologies of e-commerce, its transfer to blockchain technologies, strengthening of client orientation and personification of offshore operations, intensification of mergers of trust offshore companies, etc. It is proved that these trends reflect the global nature of offshore banks, the high level of innovation of their services, the steady diversification of banking services and increasing the level of resilience of the banking system to the factors of global economic imbalance. Particular attention is paid to the implementation of blockchain startups and the organization of exchanges for digital currency trading, which have a significant impact on the mechanisms of offshore banking. It is substantiated that the clients of offshore banks are currently provided with a wide range of services, which goes far beyond the actual banking services, and also includes consulting services on tax legislation, tax cost optimization, establishing an offshore business and more

Keywords: offshore banking; fintech; artificial intelligence; e-commerce; blockchain (search for similar items in EconPapers)
Date: 2020
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