Banks in abundance but are they safe?: the question of compensation for depositors in the event of a bank going bust has come to the top of many investors' agendas following the Barings debacle

Many offshore banks actively seek private investors and the traditional target market comprises expatriates and other international investors. Advantages of an offshore bank deposit account including interest which is credited without tax deduction meaning an investor will benefit from a tax deferral period. Many investors are concerned about compensation if a bank collapses and some authorities operate compulsory compensation schemes. The financial regulators in Guernsey and Jersey believe that a compensation scheme would be superfluous as their screening of banks is extremely rigorous.