DOCSLIB.ORG

Essential Annual Intelligence and Insight from the World's Leading International Finance Centres

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Essential Annual Intelligence and Insight from the World's Leading International Finance Centres IFCWorld 2016 ESSENTIAL ANNUAL INTELLIGENCE AND INSIGHT FROM THE WORLD'S LEADING INTERNATIONAL FINANCE CENTRES in association with NEWS RESEARCH EVENTS WEALTH AWARDS CAREERS WEALTHBRIEFING - ALWAYS AT THE CENTRE OF YOUR 360° VIEW ON THE WEALTH MANAGEMENT LANDSCAPE With 60,000 global subscribers, WealthBriefing is the world’s largest subscription news and thought-leadership network for the wealth management sector Register for a free trial www.wealthbriefing.com ESSENTIAL ANNUAL INTELLIGENCE AND INSIGHT FROM THE WORLD’S LEADING INTERNATIONAL FINANCE CENTRES Welcome to IFC World 2016. We are very proud to publish this first edition of our yearbook of the offshore world which looks at the place that international financial centres occupy in relation to one another, the ways in which they relate to, and are coping with, the latest important trends and the prospects that they have for survival and prosperity, both singly and together. In this comprehensive annual, we draw on the expertise of some of the foremost authorities on the offshore world and also on our suite of publications: WealthBriefing, WealthBriefingAsia, Family Wealth Report, Compliance Matters and Offshore Red. The earlier sections of this edition contain insights from the leaders in the field, while the latter part contains a directory of the world of international financial centres. We hope that you will find the result informative and of lasting value. Stephen Harris Chief Executive Officer ClearView Financial Media PUBLISHED BY: ClearView Financial Media Ltd Heathman’s House 19 Heathman’s Road London, SW6 4TJ United Kingdom Tel: +44(0) 207 148 0188 www.clearviewpublishing.com © 2016 ClearView Financial Media Ltd publishers of WealthBriefing, WealthBriefingAsia, Family Wealth Report, Compliance Matters and Offshore Red. All rights reserved. No part of this publication may be reproduced in any form or by any means, electronic, photocopy, information retrieval system, or otherwise, without written permission from the publishers. CONTENTS INTERNATIONAL VIEW 7 VIEWS FROM THE JURISDICTIONS Bahamas 25 Barbados 29 Cyprus 31 Dubai 35 Gibraltar 39 Guernsey 45 Isle of Man 51 Jersey 55 Malta 59 Portugal 69 Seychelles 73 Singapore 75 United Kingdom 77 Vanuatu 79 JURISDICTIONS IN PROFILE 83 INTERNATIONAL VIEW: KEYNOTE ARTICLES THE CHANGING WORLD OF OFFSHORE CENTRES * by Philip Marcovici The world is quickly moving towards transparency, wealth-owners who maintain companies, trusts corporate service-providers and others, distracted particularly in the area of taxation. The common and other structures and relationships there? by easy revenues in the present, also failed to take reporting standards and automatic information the lead. exchange, the US Foreign Account Tax Compliance It seems evident that not all offshore centres will Act, corporate reporting under the Organisation for survive, and this is probably a good thing. Others, “The need for a level playing-field” was one of sev- Economic Co-operation and Development’s base however, will not only survive but thrive. What will eral mantras: “we will change when others change erosion and profit shifting project (BEPS), benefi- it take for an offshore centre to do well under the as well – the US has limited liability companies cial ownership registers and much more are quickly new world order? And what is a mid-shore financial and little information exchange – let them change falling into place. The road towards transparen- centre? first.” As it is now clear, there is no level playing cy is far from a smooth one but the direction is field, and never will be. This was always obvious clear and the future of many offshore centres is in THE FAILINGS OF OFFSHORE CENTRES AND and anyone who thought otherwise was simply serious jeopardy. OF THE WEALTH MANAGEMENT INDUSTRY misguided. Offshore centres had a chance to lead the world towards tax transparency and other Some might say that it is not very constructive to forms of transparency – to develop strategies and apportion blame for the problems that offshore fi- base them on knowledge and training, and to focus nancial centres are facing but there is nonetheless on negotiating arrangements with other countries The file drawers of blame to apportion, if only because one has to iden- proactively, giving the onshore countries more than tify the mistakes that have led us to this point if they were asking for at a time when those offshore advisors will be wide those mistakes are not to continue. People who gov- centres still had some collateral with which to ern offshore centres have to stop making decisions negotiate. Today, they have none. open to the scrutiny according to what the financial industry says. A suc- cessful government listens to the financial services of tax authorities industry and its views and takes these views into account when forming its strategy, but it is simply wrong for it to allow well-established and perhaps Not all offshore declining special interests, with their focus on short What do we mean by ‘transparency’? In broad term profits, to dictate strategy. Again and again, centres will survive, terms, the word describes a world in which it is over and over, offshore centres have allowed the not enough for multinational businesses to pay financial services industry to determine their fate. and this is probably advisors to analyse tax laws and decide what those businesses ought to disclose to various tax Years of abuse of bank secrecy and other privacy a good thing authorities. Instead, reforms that are underway regimes by the offshore corporate services industry, at the moment are designed to place far more in- banks, trust companies and others have now led to formation in the hands of governments than they a regime change, and one that is being dictated by need for the narrow purpose of enforcing their tax the onshore governments whose tax and legal sys- OFFSHORE VS MID-SHORE – CAN THE laws. These reforms, and the ones to come after tems have been shown to have been compromised OFFSHORE WORLD SURVIVE? them, will afford governments a very clear view of on an industrial scale. Had the offshore world taken structures and strategies that they can only, at the charge of the global problem of undeclared money ‘Mid-shore’ financial centres are those whose tax moment, uncover through complex investigations. and of the other regulatory failings of the industry, laws make them attractive as places in which to In the near future, the file drawers of advisors will we would be in a very different situation. Instead, establish corporate structures, trusts, and other ve- be wide open to the scrutiny of tax authorities and the leaders of those offshore centres not only lis- hicles while also offering the advantages of being other government agencies. They will receive the tened to legacy players and the other venerable in onshore locations. An effective mid-shore juris- information automatically. special interests, but allowed them to fashion their diction has infrastructure and human resources in a strategies for the future – and in most cases, these broad range of areas and benefits from having long Will all existing offshore centres survive? Is there have proven to be ineffective. embraced information exchange and effective tax room for new offshore centres to establish them- treaties that reduce or eliminate withholding taxes. selves in the market or to diversify and offer new On their own, or together with other financial Mid-shore jurisdictions are part of our world, not products and services that have brought past suc- centres, or as part of a wealth management indus- outside of it, and offer their users bi-lateral and cess to their competitors? Or is being an offshore try-wide initiative, offshore centres had, over the multi-lateral investment protection agreements centre a dying business, with onshore centres and, last years, many opportunities to lead the world and more. perhaps, jurisdictions that are evolving into useful in tackling problems that should have been obvi- ‘mid-shore’ centres becoming more relevant in the ous to them. How can privacy be maintained as a Places like Singapore and Hong Kong are good ex- new, transparent world that is taking shape? human right while ensuring that the people who amples of mid-shore centres. They have a top-rate use offshore centres are not misusing them to infrastructure that can support the kind of struc- An article in the Guardian in December 2015 was break the laws of their home countries (or of other tures that suit a transparent world. Their tax rates entitled The Fall of Jersey: How a Tax Haven Goes countries) through tax evasion and in other ways? are reasonable and in some cases do not apply Bust – are we going to see more articles like these Instead of leading the world on these issues, off- at all (such as the tax-free treatment of non-lo- as the budgets of offshore jurisdictions come un- shore financial centres took the line of least re- cally-sourced income in those two jurisdictions). der pressure? If a well-run and reputable finan- sistance – they left it to others to take the lead They have a wide network of tax and investment cial centre like Jersey is suffering, what of more on strategy, doing nothing to change their clearly protection agreements and more. Luxembourg has marginal players, and of the risks that the failure unsustainable business practices. The users of off- long been strategic in developing products and of an offshore centre bring to the businesses and shore financial centres – trust companies, banks, services for specific elements of the investment IFC WORLD 2016 8 industry, all through good collaboration between its Offshore centres have much to learn here. One Compliance people can help offshore centres ne- government and the private sector.
Load more

Recommended publications
  • Cra Ratings of Massachusetts Banks, Credit Unions, and Licensed Mortgage Lenders in 2016
    CRA RATINGS OF MASSACHUSETTS BANKS, CREDIT UNIONS, AND LICENSED MORTGAGE LENDERS IN 2016 MAHA's Twenty-Sixth Annual Report on How Well Lenders and Regulators Are Meeting Their Obligations Under the Community Reinvestment Act Prepared for the Massachusetts Affordable Housing Alliance 1803 Dorchester Avenue Dorchester MA 02124 mahahome.org by Jim Campen Professor Emeritus of Economics University of Massachusetts/Boston [email protected] January 2017 INTRODUCTION AND SUMMARY OF MAJOR FINDINGS Since 1990, state and federal bank regulators have been required to make public their ratings of the performance of individual banks in serving the credit needs of local communities, in accordance with the provisions of the federal Community Reinvestment Act (CRA) and its Massachusetts counterpart. And since 1991, the Massachusetts Affordable Housing Alliance (MAHA) has issued annual reports offering a comprehensive listing and analysis of all CRA ratings of Massachusetts banks and credit unions. This is the twenty-sixth report in this annual series. Since 2011 these reports have also included information on the CRA-like ratings of licensed mortgage lenders issued by the state’s Division of Banks in accordance with its CRA for Mortgage Lenders regulation. As defined for this report, there were 153 “Massachusetts banks” as of December 31, 2016. This includes not only 131 banks that have headquarters in the state, but also 22 banks based elsewhere that have one or more branch offices in Massachusetts.1 Table A-1 provides a listing of the 153 Massachusetts
    [Show full text]
  • OCC, Report of the Ombudsman (2005-2006)
    Appendix A OCC Formal Enforcement Actions in the Consumer Protection Area 2009: • Florida Capital Bank, N.A., Jacksonville, Florida (formal agreement – March 26, 2009). We required the bank to strengthen internal controls to improve compliance with applicable consumer laws and regulations. • National Bank of Arkansas, North Little Rock, Arkansas (formal agreement – March 30, 2009). We required the bank to strengthen internal controls to improve compliance with applicable consumer laws and regulations. • Merchants Bank of California N.A., Carson, California (formal agreement – March 31, 2009). We required the bank to strengthen internal controls to improve its information security program and to improve compliance with applicable consumer laws and regulations. • Ozark Heritage Bank, N.A., Mountain View, Arkansas (operating agreement – Apr. 10, 2009). We required the bank to adopt and ensure adherence to a written consumer compliance program. • Farmers and Merchants National Bank of Hatton, Hatton, North Dakota (formal agreement – May 11, 2009). We required the bank to strengthen internal controls to improve compliance with applicable consumer laws and regulations. • Stone County National Bank, Crane, Missouri (formal agreement – June 25, 2009). We required the bank to strengthen internal controls to improve compliance with applicable consumer laws and regulations and to strengthen internal controls to improve its information security program. • Union National Community Bank, Lancaster, Pennsylvania (formal agreement – Aug. 27, 2009). We required the bank to strengthen internal controls to improve compliance with applicable consumer laws and regulations. 2008: • Crown Bank N.A., Ocean City, New Jersey (consent order – Feb. 19, 2008). We required the bank to pay a civil money penalty of $7,500 for violations of HMDA and its implementing regulation.
    [Show full text]
  • Xerox University Microfilms 300 North Zoob Rood Ann Arbor, Michigan 48106 7*4-3271
    INFORMATION TO USERS This material was produced from a microfilm copy of the original document. While the most advanced technological means to photograph and reproduce this document have been used, the quality is heavily dependent upon the quality of the original submitted. The following explanation of techniques is provided to help you understand markings or patterns which may appear on this reproduction. 1.The sign or "target" for pages apparently lackingfrom the document photographed is "Missing Page(s)". If it was possible to obtain the missing page(s) or section, they are spliced into the film along with adjacent pages. This may have necessitated cutting thru an image and duplicating adjacent pages to insure you complete continuity. 2. When an image on the film is obliterated with a iBrge round black mark, it is an indication that the photographer suspected that the copy may have moved during exposure and thus cause a blurred image. You will find a good image o f the page in the adjacent frame. 3. When a map, drawing or chart, etc., was part of the material being photographed the photographer followed a definite method in "sectioning" the material. It is customary to begin photoing at the upper left hand corner of a large sheet and to continue photoing from left to right in equal sections with a smalt overlap. If necessary, sectioning is continued again — beginning below the first row and continuing on until complete. 4. The majority of users indicate that the textual content is of greatest value, however, a somewhat higher quality reproduction could be made from "photographs" if essential to the understanding o f the dissertation.
    [Show full text]
  • General Assembly Distr.: General 7 March 2017
    United Nations A/AC.109/2017/8 General Assembly Distr.: General 7 March 2017 Original: English Special Committee on the Situation with regard to the Implementation of the Declaration on the Granting of Independence to Colonial Countries and Peoples Gibraltar Working paper prepared by the Secretariat Contents Page I. General ....................................................................... 3 II. Constitutional, legal and political issues ............................................ 3 III. Budget ....................................................................... 5 IV. Economic conditions ............................................................ 5 A. General ................................................................... 5 B. Trade .................................................................... 6 C. Banking and financial services ............................................... 6 D. Transportation ............................................................. 7 E. Tourism .................................................................. 8 V. Social conditions ............................................................... 8 A. Labour ................................................................... 8 B. Social security and welfare .................................................. 9 Note: The information contained in the present working paper has been derived from information transmitted to the Secretary-General by the administering Power under Article 73 e of the Charter of the United Nations as well as information
    [Show full text]
  • Together… One World
    Volume No. 7 January - February 2016 Issue No. 1 From the Editor’s desk… Let’s contribute to making this world a peaceful and happy place. We have, as part of our journey in this endeavour, presented to you a brief on 25 countries (one from each alphabet, except X). We hope you learn more about the planet we live in. I thank all contributors from each of the Sanmartini teams in making this very special to us. When you’re down and out, there seems no hope at all But if you just believe there’s no way we can fall Let us realize that a change can only come When we stand together as one! Michael Jackson & Lionel Richie – ‘We Are The World’ Together… One World All the best for 2016. A American Samoa Capital: Pago Pago Currency: US Dollar Language: Samoan It’s a subconscious truth that the happiest moments of our life often reside in the minute and unrecognised things. It goes true for countries as well where some of the people still live by their Did You Know? values and cherish them but aren’t so recognised in the modern • The only animals on the islands world. One such country is American Samoa, home of a small are rats, snakes and a few birds. group of Polynesians residing in Samoan islands. American • In Samoa, young men are in Samoa consists of five main islands and two coral atolls. This charge of the food - including wonderful community (That’s right – the whole country is the gathering and the cooking.
    [Show full text]
  • General Assembly Distr.: General 21 March 2019
    United Nations A/AC.109/2019/8 General Assembly Distr.: General 21 March 2019 Original: English Special Committee on the Situation with regard to the Implementation of the Declaration on the Granting of Independence to Colonial Countries and Peoples Gibraltar Working paper prepared by the Secretariat Contents Page I. General ....................................................................... 3 II. Constitutional, legal and political issues ............................................ 3 III. Budget ....................................................................... 5 IV. Economic conditions ............................................................ 6 A. General ................................................................... 6 B. Banking and financial services ............................................... 6 C. Transportation ............................................................. 7 D. Tourism .................................................................. 9 V. Social conditions ............................................................... 9 A. Labour ................................................................... 9 B. Social security and welfare .................................................. 9 C. Public health .............................................................. 9 D. Education ................................................................. 9 E. Crime and public safety ..................................................... 10 F. Human rights .............................................................
    [Show full text]
  • Exchange Rate Statistics
    Exchange rate statistics Updated issue Statistical Series Deutsche Bundesbank Exchange rate statistics 2 This Statistical Series is released once a month and pub- Deutsche Bundesbank lished on the basis of Section 18 of the Bundesbank Act Wilhelm-Epstein-Straße 14 (Gesetz über die Deutsche Bundesbank). 60431 Frankfurt am Main Germany To be informed when new issues of this Statistical Series are published, subscribe to the newsletter at: Postfach 10 06 02 www.bundesbank.de/statistik-newsletter_en 60006 Frankfurt am Main Germany Compared with the regular issue, which you may subscribe to as a newsletter, this issue contains data, which have Tel.: +49 (0)69 9566 3512 been updated in the meantime. Email: www.bundesbank.de/contact Up-to-date information and time series are also available Information pursuant to Section 5 of the German Tele- online at: media Act (Telemediengesetz) can be found at: www.bundesbank.de/content/821976 www.bundesbank.de/imprint www.bundesbank.de/timeseries Reproduction permitted only if source is stated. Further statistics compiled by the Deutsche Bundesbank can also be accessed at the Bundesbank web pages. ISSN 2699–9188 A publication schedule for selected statistics can be viewed Please consult the relevant table for the date of the last on the following page: update. www.bundesbank.de/statisticalcalender Deutsche Bundesbank Exchange rate statistics 3 Contents I. Euro area and exchange rate stability convergence criterion 1. Euro area countries and irrevoc able euro conversion rates in the third stage of Economic and Monetary Union .................................................................. 7 2. Central rates and intervention rates in Exchange Rate Mechanism II ............................... 7 II.
    [Show full text]
  • Patdiam Jewellery Limited
    Prospectus Dated: September 23, 2015 Please read Section 26 of the Companies Act, 2013 100% Fixed Price Issue Patdiam Jewellery Limited Our Company was incorporated as “Patdiam Jewellery Private Limited” in Mumbai under the provisions of the Companies Act, 1956 vide Certificate of Incorporation dated June 25, 1999 bearing Registration No. 120537 issued by Registrar of Companies, Maharashtra, Mumbai. Subsequently our Company was converted into a public limited company vide fresh Certificate of Incorporation dated September 7, 2015 and the name of our Company was changed to “Patdiam Jewellery Limited”. The Corporate Identity Number of our Company is U36911MH1999PLC120537. For further details of incorporation, change of name and registered office of our Company, please refer to chapter titled ‘General Information’ and ‘Our History and Certain Other Corporate Matters’ beginning on page 59 and 156 respectively of this Prospectus. Registered Office: Unit No 102, Tower No 1, SEEPZ, Andheri (East), Mumbai- 400 096, Maharashtra Tel. No.: +91 - 22 - 2829 3455; Fax No.: +91 - 22 - 2829 3459 Company Secretary and Compliance Officer : Tejas Doshi Email: [email protected] ; Website: www.patdiam.com PROMOTERS OF OUR COMPANY: SAMIR KAKADIA, PRAVIN KAKADIA, CHHAGAN NAVADIA AND MAHESH NAVADIA THE ISSUE PUBLIC ISSUE OF 13,17,000 EQUITY SHARES OF FACE VALUE OF RS. 10 EACH (“EQUITY SHARES”) OF PATDIAM JEWELLERY LIMITED (THE “COMPANY” OR THE “ISSUER”) FOR CASH AT A PRICE OF RS. 38 PER EQUITY SHARE, INCLUDING A SHARE PREMIUM OF RS. 28 PER EQUITY SHARE (THE “ISSUE PRICE”), AGGREGATING RS. 500.46 LACS (“THE ISSUE”), OF WHICH 69,000 EQUITY SHARES OF FACE VALUE OF RS.
    [Show full text]
  • Oakland City Council
    OAKLAND CITY COUNCIL RESOLUTION NO. _____________ C.M.S. INTRODUCED BY COUNCILMEMBER ______________________________ A RESOLUTION CERTIFYING BANKS THAT HAVE MET THEIR 2000 FAIR SHARE GOALS PURSUANT TO THE CITY’S LINKED BANKING SERVICE ORDINANCE WHEREAS, the City Council adopted an amended Linked Banking Services Ordinance, Ordinance No. 12066 C.M.S., on July 14, 1998; and WHEREAS, the Ordinance established a process for determining which banks have met their “Fair Share Goals” for Oakland community lending; and WHEREAS, an assessment of the 2000 performance of Oakland banks in meeting their Faire Share Goals for community lending pursuant to the Linked Banking Services Ordinance was conducted, and seven banks were found to have met their Fair Share Goals; now therefore be it RESOLVED: That the following banks are certified by the City Council as having met their 2000 Fair Share Goals: • Bank of America • Bank of the Orient • Community Bank of the Bay • Metropolitan Bank • Union Bank of California • Washington Mutual • Wells Fargo Bank and be it further RESOLVED: That the following banks are not certified by the City Council as having met their 2000 Fair Share Goals: • Bank of Canton of California • Bank of Oakland • Bank of the West • California Bank & Trust • California Federal Bank • California Savings & Loan • Cathay Bank • Citibank Federal Savings Bank • Civic Bank of Commerce • Fireside Thrift Company • First Federal Savings & Loan Association • Gateway Bank • Mechanics Bank • Mission National Bank • Sanwa Bank California • Summit Bank • United Commercial Bank • United Labor Bank • World Savings & Loan • World Savings Bank, F.S.B and be it further RESOLVED: That the City Manager shall file the lists of banks that have met their 2000 Fair Share Goals and those that have not with the City Clerk and with the appropriate federal and state regulatory agencies.
    [Show full text]
  • AIBMS Multicurrency List
    AIBMS PROCESSING AND SETTLEMENT CURRENCIES END TO END CURRENCIES WILL BE SETTLED LIKE-FOR-LIKE AND ALL OTHER CURRENCIES PROCESSED WILL BE SETTLED AS EURO, GBP OR USD DEPENDING ON BUSINESS REQUIREMENTS AED United Arab Emi Dirham EUR GMD Gambian Dalasi EUR PAB Panamanian Balboa EUR AFA Afghani EUR GNF Guinean Franc EUR PEN Peruvian New Sol EUR ALL Albanian Lek EUR GRD Greek Drachma EUR PGK Papua New Guinea Kia EUR AMD Armenian Dram EUR GTQ Guatemalan Quetzal EUR PHP Philippine Peso EUR ANG West Indian Guilder EUR GWP Guinea Peso EUR PKR Pakistani Rupee EUR AON Angolan New Kwan EUR GYD Guyana Dollar EUR PLN Polish Zloty (new) PLN ARS Argentine Peso EUR HKD Hong Kong Dollar HKD PLZ Polish Zloty EUR ATS Austrian Schilling EUR HNL Honduran Lempira EUR PTE Portuguese Escudo EUR AUD Australian Dollar AUD HRK Croatian Kuna EUR PYG Paraguayan Guarani EUR AWG Aruban Guilder EUR HTG Haitian Gourde EUR QAR Qatar Rial EUR AZM Azerbaijan Manat EUR HUF Hungarian Forint EUR ROL Romanian Leu EUR BAD Bosnia-Herzogovinian EUR IDR Indonesian Rupiah EUR RUB Russian Ruble EUR BAM Bosnia Herzegovina EUR IEP Irish Punt EUR RWF Rwandan Franc EUR BBD Barbados Dollar EUR ILS Israeli Scheckel EUR SAR Saudi Riyal EUR BDT Bangladesh Taka EUR INR Indian Rupee EUR SBD Solomon Islands Dollar EUR BEF Belgian Franc EUR IQD Iraqui Dinar EUR SCR Seychelles Rupee EUR BGL Bulgarian Lev EUR IRR Iranian Rial EUR SEK Swedish Krona SEK BGN Bulgarian Lev EUR ISK Iceland Krona EUR SGD Singapore Dollar EUR BHD Bahrain Dinar EUR ITL Italian Lira EUR SHP St.Helena Pound EUR BIF Burundi
    [Show full text]
  • Guide to Contracting in Gibraltar COUNTRY HIGHLIGHTS (2017) Gibraltar – Individual
    Guide to Contracting in Gibraltar COUNTRY HIGHLIGHTS (2017) Gibraltar – Individual Currency Gibraltar Pound (GIP) Tax Year Starts 1 July Ends 30 June Personal Allowance 3,200GIP Tax Rates First 17,000GIP 16% Next 8,000GIP 19% Next 15,000GIP 25% Next 65,000GIP 28% Next 395,000GIP 25% Next 200,000GIP 18% Balance 5% Social Security Employers 20% subject to a maximum amount Employees 10% subject to a maximum amount Tax Residency An individual becomes Tax Resident in Gibraltar if; . They are present for at least 183 days in a year; or . 300 days in any three consecutive years is ordinarily resident. Presence is defined as any part of a 24 hour period commencing at midnight. An individual who is Tax Resident is taxable on Worldwide Income except if exempt under a double taxation treaty. An individual who is not Tax Resident is taxable in Gibraltar on Income earned or generated in Gibraltar, unless the assignment is for 30 days or less and the earnings are ancillary to work otherwise exclusively carried on outside Gibraltar. Social Security Social Security is payable in Gibraltar unless the individual is paying Social Security in the country in which their employer is based and they are habitually resident. A certificate of continuing liability to Social Security is required to exempt the individual from Gibraltarian Social Security. Right to Work EU and EEA Nationals have an unfettered right to work in Gibraltar without the need to hold a VISA or Work Permit. Other Nationals, generally, need to have the relevant approval to work prior to their arrival in Gibraltar, with applications to be made to the Governor’s Office in Gibraltar.
    [Show full text]
  • Liquidity from Two Lending Facilities
    Liquidity from Two Lending Facilities Sriya Anbil Angela Vossmeyer Federal Reserve Board∗ Claremont McKenna Collegey August 10, 2017 Abstract During financial crises, the Lender of Last Resort (LOLR) uses lending facilities to inject critical funding into the banking sector. An important obstacle for policymakers is designing the facility so that banks are not reluctant to approach due to stigma, and attracting banks with liquidity concerns rather than those prone to risk-taking and moral hazard incentives. We use an unexpected disclosure that introduced stigma at one of two similar LOLRs during the Great Depression to evaluate whether or not banks used LOLR assistance to improve their liquidity needs using a novel trivariate model with recursive endogeneity. We find evidence that banks that approached the facility with stigma were less liquid and reduced their position of safe assets in comparison with banks that approached the facility with no stigma. Thus, stigma forced the pool of LOLR borrowers to separate into different groups of banks that ex-post revealed their liquidity preferences to policymakers. This finding informs policymakers' ex-ante decision of designing a facility that only attracts banks with liquidity concerns. 1 Introduction During the recent financial crisis, the Federal Reserve (Fed) acted as the Lender of Last Resort (LOLR) to inject critical liquidity into the banking sector through its main emergency lending facility, the discount window (Armantier et al., 2015). The discount window was designed to alleviate funding stresses in the banking sector, thereby lessening a \credit crunch" to the real economy. However, banks were reluctant to borrow from the Federal Reserve's discount window because, if it somehow became known, would lead market participants to infer weakness { the so- called stigma problem (Bernanke, 2009).
    [Show full text]