Do offshore banks guarantee your money in case of failure?

[LegitBananas]

Hey guys,

so as you are all aware of, traditional banks in the US and Canada only guarantee to return you a certain amount in times of financial crisis or bank failure. I believe that the number is 250K in the US and 100K in Canada and the rest of your money is gone.

What's the case like with these offshore banks in Belize, HK, BVI, etc? Do they also only guarantee a set amount or are you guaranteed to keep 100% of your money at all times regardless of the state of the institution? Also, do you guys feel more "safe" or "comfortable" with all your money elsewhere as opposed to a bank in your home country?

 

[Martin Everson]

What's the case like with these offshore banks in Belize, HK, BVI, etc?

Have you seen the Choice bank thread and problems people are having in regards to that Belize bank..lol?

https://www.offshorecorptalk.com/th...belize-faces-liquidity-problems.23299/page-36
All countries are different so bottom line you need to go through each country individually to answer your question which you can do via google.

 

[LegitBananas]

Have you seen the Choice bank thread and problems people are having in regards to that Belize bank..lol?


All countries are different so bottom line you need to go through each country individually to answer your question which you can do via google.

I see everyone saying "answer questions via Google" - isn't a forum meant to discuss ideas and share value though? What's the point of this forum if we just google everything

If Belize is a bad idea, what offshore accounts do you personally use or recommend in which countries?

 

[Tax Cow]

That 250K in the US, and 100K in the case of EU and CA is about as high as it gets for FC schemes.

Banking in these alternative offshore jurisdictions you mentioned as a non-resident serves absolutely no purpose from the standpoint of FC compensation over US/EU/CA. However, offshore banking starts to make sense if you take a bet that US/EU/CA cannot honor their FC commitments when SHTF.

If you look at a typical western bank, liquidity is near zero and derivatives exposure is through the roof. It is a good argument to go for an offshore bank that has ~10% liquidity, and a conservative asset portfolio, even if they have no FC at all. Avoid all jurisdictions that have stringent capital movement regulations (capital controls) or foreign remittance taxes.

 

[LegitBananas]

That 250K in the US, and 100K in the case of EU and CA is about as high as it gets for FC schemes.

Banking in these alternative offshore jurisdictions you mentioned as a non-resident serves absolutely no purpose from the standpoint of FC compensation over US/EU/CA. However, offshore banking starts to make sense if you take a bet that US/EU/CA cannot honor their FC commitments when SHTF.

If you look at a typical western bank, liquidity is near zero and derivatives exposure is through the roof. It is a good argument to go for an offshore bank that has ~10% liquidity, and a conservative asset portfolio, even if they have no FC at all. Avoid all jurisdictions that have stringent capital movement regulations (capital controls) or foreign remittance taxes.

Thanks for the response. Do you have any personal recommendations/favourites when it comes to offshore banking? From my research, something like Caye or Heritage in Belize seemed like a great option, but other posters on here are saying that Belize is going to sh*t so I'm not sure what to believe anymore. If it makes any difference, I plan to incorporate in the BVI.

 

[Tax Cow]

Avoid tiny countries that rely too much on tourism and lack economic backbone. I'd never safekeep anything in Belize, but nearby countries like Mexico, Costa Rica and Panama are respectable places with real activity.

In regards to Switzerland, Singapore and HK, banks in those jurisdictions are of too high opinion of themselves - a 7 out of 10 who thinks she's the queen of the world attitude.

 

[LegitBananas]

Avoid tiny countries that rely too much on tourism and lack economic backbone. I'd never safekeep anything in Belize, but nearby countries like Mexico, Costa Rica and Panama are respectable places with real activity.

In regards to Switzerland, Singapore and HK, banks in those jurisdictions are of too high opinion of themselves - a 7 out of 10 who thinks she's the queen of the world attitude.

Thanks for the advice man! Yeah, HK looked good to me at first but then I realized they're apparently reallyyy strict and on top of that, you actually have to go all the way there just to open the account. I'm gonna do some more digging into Panama and Costa Rica.

 

[Martin Everson]

I see everyone saying "answer questions via Google" - isn't a forum meant to discuss ideas and share value though? What's the point of this forum if we just google everything

People come here for questions they can't find answers too elsewhere and also to discuss ideas and specific cases. You are coming here asking a question that google can answer. It's like asking "How much is corporate tax rate in UK?"....lol

 

[libertycity]

I know in HK around 90KUSD guaranteed.Banks in Cyprus nothing.Banks in Belize nothing.You should read their deposit insurance terms in each area.