Banks are an evolution for the stakeholders, shareholders, and the normal day-to-day customer.

Looking at international banks, they are an epitome of the traditional banks. How? Let’s find out.

In the era of mass corruption going on and news showing the swiss bank accounts and Panama scandals, offshore bank accounts are not a new term for the general public. International banks offer the same services to that of a normal bank you have been. It deals with financial service, payment services, lending and investment opportunities to foreign clients. These clients can be individuals, companies, but mostly decided by the banks and their SOP’s.

OCRA worldwide is an organization, which matches people and companies to the international banking setup. Are these banks available for a normal joe? No, these banks cater to the needs of the wealthy individuals and corporations. The initial acceptance to these banks starts from $100,000 and does not end till billions and trillions of dollars.

However, the renowned swiss banks operate under a different rule, i-e; acceptance of any customer, showing their versatility of working with customers from all income groups.

International banks are tax-free, therefore, a major selling point for the customers. Tax evasion are not illegal when these banks come into play. The money from individuals is deposited in these banks to shelter it from the country’s records and its estate taxes. Some famous hosts of these banks are based in countries with low or no income and estate taxes. These countries include:

• Cayman Islands
• Belize
• Panama
• Isle of Man

Customers have to provide a reason of their deposit with the bank to obtain the taxation free status and not trigger the tax evasion laws of these countries.

International banks invest in the economies of booming countries and the developing countries because of the return on profits and the reduced risk factor due to the stable economies. Wealthy individuals keep the money in offshore banks to prevent lawsuits. These bank structures are active in international markets and unaffected by the interest rate fluctuations. Additionally, they might earn better interest than being provided in the domestic banks.

Banks make it easier to carry businesses around the globe without having to set up millions of bank accounts and avoid the prolonged waiting processes of receiving of the money. Offering financial services, payroll for companies for their employees abroad, and credit approvals for trade between companies and countries make it a must to have these bank accounts due to their efficient net banking and physical convenience as well.

As all banks scrutinize their customers and the loan payback periods, these banks are an epitome to its cousins as well and perform their contingency measures effectively and in sync with the regulation authorities.

So many benefits, right? We should all open our accounts there, shall we?

Not a good idea at all. If the bank is in a country, which happens to have crisis and may face a war or depression or in a country of corrupt practices, the hard-earned or black-gold net worth would be swallowed by the devaluation and inflationary lava.

Domestic currency is always changing and gives an element of mysteriousness when checked daily. In international banks, the situation seems to be the same. Foreign currency can change too. A sudden plummet can cancel out the increased interest rates you were getting previously. Investment loans can turn out to be a guillotine when compared with the domestic currency’s recession hit losses.

The Federal Deposit Insurance Corporation (FDIC) does not insure foreign banks except the divisions under the US. Money laundering, terrorism and tax evasion have made these banks wary of their client’s activities. The IRS (Internal revenue service) keeps a close eye on such accounts under the US divisions, which means other divisions are prone to such practices and the money you deposit may be at risk.

Now that we know about the international banks, their benefits and the vices up their sleeves, let us see some notable banks around the globe.

• Industrial and Commercial Bank of China
• China Construction Bank Corp.
• Agricultural Bank of China
• Bank of China
• HSBC Holdings
• JPMorgan Chase and Co.
• BNP Paribas
• Mitsubishi UFJ Financial Group
• Bank of America
• Credit Agricole Group

The banks mentioned above have played vital roles in the success of billion dollar and trillion-dollar statuses of businesses. They will continue to do so because of their abundant reserves available for the loans and depository functions as facilitation. They are the so-called “monopoly”, when it comes to effective management of currency throughout the globe. Would you deposit your lifetime income there? Yes or No?