Banking

Ask most people and they will feel more comfortable banking with a UK bank than they would with one offshore, but when you understand the business model of our main banks you have to wonder why.

UK (& EU/US) banks work on a leveraged debt business model… basically this means that they borrow money in order to lend it out. The capital base of your local bank can be as little as 1.5% — to put this into perspective, imagine going to your bank and asking for a 98.5% mortgage… the bank would tell you it's too high risk, and yet that is how they work their own business every day. This high risk strategy is why there is a deposit protection scheme funded by the Government, and why we had the banking crisis.

Many of the offshore banks however have a much higher capital ratio, often 70% or more, and we are an introducer for one offshore bank that has a 100% capital base… making them one of the safest banks around.

Offshore services (companies & banks) are, in general, very much misunderstood. Rather than the havens of the rich, they are in fact accessible by all, quite legal and relatively inexpensive to utilise… they are also great ways to ensure that your hard earned money is spent as you want it to be, and your assets are there for your children.

tax@ashbydale.co.uk