The CBB terms as wholesale banks Bahrain's off-shore banking
sector that caters to channelling the region's oil money, in particular from neighbouring Saudi Arabia, into investments in the West and in the region.
It seems that these days the US sees targetting terrorists funding as an effective weapon in this war and, at last, real pressure might be exerted on the world's off-shore banking
centres to clean up their acts.
A), off-shore Banking
subsidiaries in Panama, Cayman and Puerto Rico, as well as an agency in Miami.
From time to time he examines US policy in this regard, and in one highly critical chapter he addresses some of the failings of President Clinton's administration with regard to the sovereign debt of developing nations, off-shore banking
transparency and regional trading agreements.
Future reforms are expected to include greater supervision of consolidated financial groups and off-shore banking
, increased transparency, and improved access to independent opinions regarding the banks' financial situation.
Fitch has expressed in the past its concern about the sizeable off-shore banking
activities of the Guatemalan banks.
Fitch's concern regarding the Costa Rican banking sector relate to its high incidence of state ownership, widespread dollarization, and the presence of a largely unsupervised off-shore banking
Fitch also believes that the Costa Rican banking system is weaker than some of the other 'BB' credits due to high incidence of state ownership, widespread dollarization, regulatory and supervisory shortcomings and the presence of an off-shore banking
A comprehensive tax reform, further strengthening of bank supervision, especially of off-shore banking
activities, and progress on privatization would be viewed favorably by Fitch.
Cyprus's off-shore banking
centre has not been identified by the OECD as 'un-cooperative' and requiring special attention, while in a recent report the IMF concluded that supervision was generally effective and thorough.