Offshore private banks have faced some significant challenges arising from the financial crisis: among them are capital market volatility, low interest rates and increasing regulation. But macro-economic and demographic trends are shifting, and that’s opening up tremendous growth opportunities.
First, the number of millionaires worldwide is increasing. According to the McKinsey Global Private Banking Survey 2013, there will be about 16 million of them by 2016, representing an increase of 30%.
Second, the emerging markets have suffered a setback in the last few years, but they’ve fared much better than developed countries, where the economy hasn’t exactly provided fertile ground for wealth generation. Entrepreneurship abounds in the emerging markets, and as businesses succeed, their owners are amassing private wealth. Over the next four years, Asia – especially India and China – is likely to surpass all other regions by creating about US$7 trillion in net new millionaire wealth. Brazil has also moved up the league table. And a significant percentage of the millionaires fall into the ultra-high net worth segment. Of course that’s not to say that entrepreneurs in the developed markets won’t be able to benefit from an upswing in the economy over time.
Whether they’re from a developed or emerging market, people who want to preserve their wealth and accumulate more assets are attracted to offshore banking centers such as Belize. Why? Belize has strong discretionary policies. It has a solid, sovereign government and a stable economy. In fact, it has never devalued its currency, and its fixed exchange rate has been pegged to the U.S. dollar since 1976. Tax treaties are in place between Belize and multiple jurisdictions. It has multilateral trade relationships and memberships with international organizations. In addition, it has a forward-thinking, technology-based culture.
Belize Bank International is poised to capitalize on this opportunity. Our experienced, high caliber relationship managers are devoted to meeting corporate and private clients’ needs at various stages. We offer flexible access to credit, transaction banking products such as current accounts, as well as cross-border and global banking services. Our network of partners allows clients to maximize their experience through an unmatched, client-centric organization. Moreover, clients can take advantage of self-service through our online banking offering or hands on service.
The global economy is at a turning point, although it will take some time for markets to flourish once more. Many individuals and businesses are (or will be) in a position of financial strength, and Belize Bank International is a partner they can rely upon to meet their needs.