Title: Booking positions in small offshore financial centres: focus on US global banks

Authors: Carmela D'Avino; Mimoza Shabani

Addresses: Rennes School of Business, 2, Rue Robert D'Arbrissel, CS 76533, 35065 Rennes Cedex, France ' University of East London, 1 Salway Road, London, E15 1NF, UK

Abstract: Small offshore centres are home to the leading booking centres of global banks and facilitate their transactions across offices worldwide. This paper investigates the factors driving booking positions in offices located in small offshore centres, with a focus on US global banks. We find that global banks tend to increase their booking positions when liquidity conditions at the global and parent levels deteriorate and when banks' risk-taking increases through leverage. Our results suggest that lower tax levels and higher secrecy explain booking centres' localisation in small offshore countries.

Keywords: small offshore centres; prudential regulation; global banks; booking positions.

DOI: 10.1504/IJBAAF.2024.137095

International Journal of Banking, Accounting and Finance, 2024 Vol.14 No.1, pp.28 - 57

Accepted: 13 Jun 2023
Published online: 01 Mar 2024 *

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