Offshore banking has increased rapidly all over the world since mid-1960s because of the growth and liquidity of world financial markets. The full spectrum of financial services from offshore banks include deposit taking, money transmissions, provision of foreign exchange, trade finance, credit facilities, investment custody, investment management, fund management, trustee services and corporate administration.

Offshore banks provide access to politically and economically stable offshore jurisdictions that may be an advantage for those who are resident in areas where there is a risk of expropriation or where there is corruption within the banking system. Many offshore banks offer services that may be unavailable in one’s country of residence. Offshore banks in several nations participate in mandated bank account deposit protection insurance systems. Some offshore banks may even provide higher interest rates than banks in the home country.