MODERN INTERNATIONAL BANKING REGULATION: IS OFFSHORE BANKING NEAR TO ITS END?

One of the key reasons influencing the existence of existing ones and the development of new offshore centers and offshore banks is the sluggishness in global tax harmonization, as well as a lack of interest among many countries to harmonize tax rates and fiscal policy, i.e. rapid tax competition. Tax competition carries with it both harm and benefit. The harm of tax competition is primarily due to the effects of secrecy and illegal transfer pricing. The benefits of tax competition on a global scale are most evident in the growth of investment investments in countries with high tax rates and in the accelerated economic development of tax heavens. Whether in the future, both offshore banking and offshore banks maintain the role they currently have – as a leverage for accelerating international trade and international financing – this is the main topic of this paper. To comprehensively examine it, the current banking regulation has been analyzed. Research efforts have been made to identify trends molding international banking regulation, particularly the practice of the most important organizations in this domain: The Organization for Economic Co-operation and Development (OECD).