Offshore Banking Centres: Prospects and Issues

Tax reforms and implications for international banks: The case of Cyprus

“…Cyprus combined a number of key requisites that have been instrumental in the development of other offshore financial centers (Roussakis et al, 1993). For example, it combined such attributes as, a strategic location (proximity to Eastern Europe, Russia, the Middle East, and Africa); a favorable time zone (it straddled the closing of the financial centers in the East and the opening of financial centers in the West -a desirable trading window for the portfolio transactions of banking units); business statutes and commercial banking practices Tax Reforms and Implications For International Banks: The Case of Cyprus that followed the British model; well developed telecommunications facilities; and a high quality of professional services.…”

“…The development of IBUs and the growth of Cyprus as an offshore banking center was a product of government efforts to attract foreign investments and stimulate the economy in the aftermath of the Turkish invasion of the northern part of the country in 1974. Cyprus combined a number of key requisites that have been instrumental in the development of other offshore financial centers (Roussakis et al, 1993). For example, it combined such attributes as, a strategic location (proximity to Eastern Europe, Russia, the Middle East, and Africa); a favorable time zone (it straddled the closing of the financial centers in the East and the opening of financial centers in the West -a desirable trading window for the portfolio transactions of banking units); business statutes and commercial banking practices…”