Offshore Banking Unit - OBU
Barron's Banking Dictionary:
Top
Offshore Banking Unit (OBU)
Shell branch owned by a nonresident bank in an international financial center that, by accepting deposits from foreign banks and other OBUs, makes loans in the Eurocurrency market, unrestricted by local monetary authorities or governments. An offshore banking unit cannot, however, take domestic deposits. Since the 1970s these financial units have sprung up in major European cities, the Mideast, Asia, and the Caribbean. The major offshore banking centers for U.S. Banks are the Bahamas, the Cayman Islands, Hong Kong, Panama, and Singapore, which offer favorable political, regulatory, and tax treatment. Since 1981, U.S. Banks have been permitted many of these same advantages through International Banking Facilities, located in major U.S. Financial centers. See also International Banking Facility.
Investopedia Financial Dictionary:
Top
Offshore Banking Unit - OBU
A shell branch located in an international financial center. Offshore banking units (OBUs) make loans in the Eurocurrency market when they accept deposits from foreign banks and other OBUs. OBUs' activities are not restricted by local monetary authorities or governments, but they are prohibited from accepting domestic deposits.
Investopedia Says:
OBUs have proliferated across the globe since the 1970s. They are found throughout Europe, as well as in the Middle East, Asia and the Caribbean. U.S. OBUs are concentrated in the Bahamas, the Cayman Islands, Hong Kong, Panama and Singapore.
Related Links:
This owner's manual will show you what to expect from your bank. Your First Checking Account
From coins to credit, find out how the earliest system of money management started. The Evolution Of Banking
For many, online banking has become a day-to-day routine. Still, there are some holdouts who refuse to accept the method. Online Banks: Lower Costs And Little Sacrifice
The SIPC and FDIC insure against personal financial ruin when banks or brokerages go belly up. Bank Failure: Will Your Assets Be Protected?
Take advantage of the deals banks offer, and find the right account for your financial situation. Bag The Best Bank Account
Post a question - any question - to the WikiAnswers community:
Copyrights:
Barron's Banking Dictionary
Dictionary of Banking Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.
Read more
