What is an Offshore Banking Unit (OBU)?
An offshore banking unit is a bank branch in another country.
How Does an Offshore Banking Unit (OBU) Work?
For example, let's assume that Bank XYZ is an American bank with a branch in Bermuda. As on offshore banking unit, the Bermuda branch does not accept deposits from anyone except other foreign banks, and it loans.make Eurocurrency
Why Does an Offshore Banking Unit (OBU) Matter?
OBUs are common in the Caribbean and Asia but are found all over the world. They are far less restricted in terms of their allowed activities because they usually are not subject to many of the financial regulations of the country in which they are located. For this reason, investors may be able to obtain better interest rates from OBUs and they may be able to avoid taxation or retain privacy by moving to an OBU. Secrecy, however, is not guaranteed.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
Read This Next
Ever wonder why that house on your street is just sitting there, making the neighborhood look crummy? You're not alone. Every month, there are hundreds of thousands of home foreclosures...Read More →
When comparing income statements, many investors focus on gross margins (which is a measure of gross profits divided by sales...Read More →
More than 76 years ago, Franklin D. Roosevelt's New Deal was signed into law. As the linchpin of the New Deal, the Social Security program was implemented in order to...Read More →