Banking Systems of Asia, Europe, East and Insular States

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In modern world practically every our step is related to banking transactions such as purchases, trips, salaries, money transfers, charity as well as running business. Nowadays we are quite helpless without banking account. Resulting from the prohibition against bank advertising it is very difficult to make a right choice depending on the business lines of company. At the beginning, it is necessary to select jurisdiction before choosing the bank itself where the account can be directly opened. Country in which you are going to open the account should be politically and economically stable and have stable local currency. It should be taken into account that usually jurisdiction has tendency either to traditional banking or to investments. It is also reasonable to open an account.

OLIESERVE will easily cope with the choice of bank and the type of the account appropriate for you. Before making the decision on jurisdiction we offer you to get acquainted with banking systems and peculiarities of every one of them.

Europe and Central Asia

Areas of Europe and Central Asia suffered from world economic crisis in 2009 more than any other area and the speed of economic recovery is lower than in other parts of the world.

Banking System of Czech Republic

In 2010, Global Finances magazine published the rating of banks of Europe. To Central and Eastern Europe two Czech banks, Ceska Sporitelna and Komercni Banka are obvious leaders. Long-term credit ratings of leading international agencies and banks resources were considered as the selection criteria.

Banking System of Czech Republic is a good example of over passing crisis and it demonstrates enviable stability in difficult times. The keystone of such stability is the emphasis on consumer and commercial crediting of home economy. In Czech Republic, banks are constantly profitable and have foundation of home deposit base, deposits-to-credits ratio is permanently more than 100%. The level of liquidity, capital adequacy and profitableness are at high level. Moreover, the crisis practically did not undermine stability of Czech banks, it just rose past due rate from 3 till 6%!

 The overall situation of banking system of Czech Republic seems to be rather stable. The ratio of deposits in liabilities structure amounts 63%. Capital level is sufficient and currently amounts about 16% of assets; even during a downturn it did not descend lower than 11%. At present loan delinquency rate is constant, in last two years it was on the level of 6%.

In such situations basis risks are connected not so much with inner situation in Czech economy that is entering deceleration phase as with the dependence on parent banks in West Europe. The risk of siphoning off the capital from their subsidiaries solving their own problems is maintained.

Banking system of France

Banking system of France is one of the most developed ones in the world and is under control of the country. Banks of France do not have the right to hide from civil services the size and form of accounts and capital transfers (especially in foreign countries).

Every bank in France has its requirements for opening an account and operates according to the available experience of contacts with citizens of this or that country. One of the ways to promote account opening is the recommendation of the person who proved to be a client of given French bank. For raising a credit it is necessary to compile full, impressive dossier, attend medical examination, meet with bank representatives. The credit can be raised for the period from 5 till 15 years with annual payment of about 6% in Euro.

France owns a large bank network with three leading bank institutions – Credit Agricole, Banque National de Paris and Credit Lyonnais, which are included into top 10 of world banks. And Caisse des Depots et Consignations (CDC) was on the second place in the top list of best banks of West Europe according to Global Finance magazine of 2010.

Banking System of Cyprus

Many businessmen choose exactly the banks of Cyprus for saving means. It is not surprising as banking system took best merits of European banks. The accounts can be distantly operated, via the Internet or by fax; the account can be not only in Euro, US dollars but also in Russian rubles and in other currency if requested; low cost of account servicing; a multi-lingual staff provides convenient client servicing; clients of Cyprus banks are guaranteed full privacy.

Banking system of Cyprus consists of Central Cyprus Bank (CCB), local commercial banks and branches of foreign banks. Commercial banks are arranged and work under the principle of British model. Local banks can transact traditional and specialized financial operations.

In virtue of the authority given by the law CCB is the body, which issues a license for banking business and controls banks. CCB in its activity is always governed by recommendations of Basel Committee on Banking Supervision and uses the directives of European Community on Banking Legislation, always updates its activity using new achievements and changes. Its main goal is to provide safe and reliable financial system that people will trust and support economic stability and growth.

Despite of all advantages of using Cyprus banking system it cannot be mention unexpected bank crisis of 2013. The authorities devoted many efforts to solve this problem. Due to their competence and striving for saving the high level of confidence, Ministry of Finance of Republic of Cyprus until the present time, only in 2 years, has lifted all taken restrictions of bank transfers in the country and abroad. The biggest banking institutions that have gone through fire and water (of 2013) are:

  • Bank of Cyprus
  • Piraeus Bank
  • Alpha Bank
  • Eurobank Cyprus
  • Cooperative Central Bank

Gibraltar banking system

Gibraltar is a EU member since 1973, but it doesn`t rank among the countries keeping up common external tariffs, common agricultural policy and demand of value added tax.

Banking transactions in Gibraltar are carried out in accordance with Banking Act of 1992, which was created according to EU instructions. Bank of England has control over banking transactions in Gibraltar by bank Inspector.

Gibraltar takes advantage from the Unique European passport system of banks and new legislation allowing EU banks open branches in Gibraltar, while Gibraltar banks can open branches in Europe.

Relatively small in accordance with international standards Gibraltar banking sector numbers 18 banks and building associations. Well-developed banking sector of Gibraltar is reducing now due to the reorganization. 10 banks deal with international activities, while 8 banks combine traditional banking business with offshore one.

Gibraltar is a full member of the offshore banking inspectors group and meets all international regulatory bank standards, worked out and promoted by the Basel Committee on Banking Supervision.

Asia, the Middle East and the Pacific Region

East Asia and the Pacific will stimulate the global economic growth. In 2013, East Asia and the Pacific remained the fastest growing region in the world – it accounted for over 40 percent of world output growth. Growth rates in China maintained the level 7,7%, while other developed countries in the region faced the reduction to 5,3% from 6,3 in 2012. Compound growth rates in developed countries of the region are expected to reserve the level of 7,0% till the end of 2016. In the immediate future developing countries of the region have favorably met world recession, maintaining high rate of growth. In 2014 the annual report of World Bank indicated this issue. East Asia and the Pacific region in 2012 accounted for about 40% of global GDP growth, and the global economy keeps on resting upon this region.

The UAE Bank system

The UAE banks are divided into two major categories: regional incorporated banks and corporations, licensed according to the provision of the UAE law №10 of 1980, and foreign banks branches that obtained National bank licenses on carrying out banking operations in the country in accordance with the mentioned Law regulations. In the UAE two types of banks are distinguished by the operational principle:

Banks with limited license Investment banks
Bank with limited license is a commercial bank not eligible to take deposits from residents in Dhs. Such bank takes deposits in foreign currency and can give credits both residents and non-residents. UAE Law №10 of 1980 specified investment bank as a bank not taking deposits as for a term of less than 2 years.

Hong Kong bank system

The Banking Act has been readjusted in 1986, and then further changes aimed at improvement of the market monitoring system have been implemented. Monetary Hong Kong Administration is eligible for controling of multi-purpose payment cards and brokers` activities on the monetary market.

Hong Kong has three-staged deposit-taking authorities system, including licensed banks; limited license banks (RLBs) and companies that accept deposits (DTCs). All these authorities are called AIs. Only licensed banks can open working and deposit accounts, accept deposits of any size and at any time. RLBs are allowed to accept deposits only in the amount of HK $ 500,000 and above, while the DTCs can take deposits in an amount of at least 100,000 Hong Kong dollars with the initial term of not less than three months.

RLBs and DTCs belong to different authorities’ types that allow foreign banks now having full banking license set up new institutions in Hong Kong for carrying out wholesale activity and investment banking business.

By the end of March 2005 133 licensed banks, 39 limited license banks and 35 companies taking deposits operated in Hong Kong. Of the total 207 AIs, 182 owned 30 foreign companies. In addition, there are 84 representative offices of foreign banks.

Singapore banking system

Singapore belongs to one of the leading world financial centers, being at the same time major distributive hub of South-Eastern Asia. Today 113 trading banks function on the territory of Singapore.

By the end of 2004 domestic banking sector of Singapore accounted assets / equity worth about 230 billion USD dollars. Monetary Singapore administration (MAS) is the National bank of the country.

Bank type Kind Peculiarities Activities A number of operating banks\branches\companies
Trading Bank with a full service specter These banks can use ATMs together; besides, they are free to change the location of their offices – Online transactions; -Add-on package of retirements insurance;  -Investment accounts use; – Time deposits taking within  the investment procedure and procedures with minimal deposit sum 28
Trading Wholesale banks Operate in accordance with MAS-issued recommendations on wholesale banks work Full service specter except when they are not eligible to provide retail bank services with Singapore dollar 37
Trading Offshore banks Operate in accordance with MAS-issued recommendations on offshore banks. Total available loan amount in Singapore dollar has been increased to 500 million A full range of services and implementation of activities with the Asian currencies, expressed in units of Asian currencies (ACU)48
Commercial Financial authorities -Corporate entities funding; -Signed agreement for issued bonds and shares; -Deposits taking; -Consolidation and takeover of companies;  -Investment profile operating; – Management consulting etc; 52
Financial company It is not eligible to provide an unsecured loan in the amount of more than 5,000 Singapore dollars to any person or for any transaction-Small amount of financing; – Loans for vehicles and other durable goods purchased by installment; -Launching of loans for accommodation purchase 3

It`s relatively easy to open the bank account in any country, but what guarantees that the bank is free from risk? This issue requires particular approach, profound analysis and work experience with banking institutions. We offer services on bank account opening in such jurisdictions as Czech Republic, France, Cyprus, Gibraltar, Dubai, Hong Kong, Singapore, Luxembourg, Great Britain, Latvia, Austria, New Zealand and others.

Apart from opening bank account, OLIESERVE can also help you with business relocation.