The characteristics of offshore financial market are: 1. Business activities are rarely regulated by laws and regulations, simple procedures, low tax or exemption, and high efficiency.
2. The offshore financial market is made up of a global network of international banks that do business offshore. These banks are called “offshore banks”.
3. The currency of loan in offshore financial market is foreign currency, and the borrower can freely choose the currency type.
The lending relationship in this market is the relationship between foreign lenders and foreign borrowers, and this lending relationship involves almost all countries in the world.
4. The offshore financial market is based on LIBOR.
Generally speaking, the deposit rate is slightly higher than the domestic financial market, and the lending rate is slightly lower than the domestic financial market, the spread is small, more attractive and competitive.
