The most basic concept is that offshore bank refers to the financial activities that banks absorb the funds of non-residents and serve them. In short, offshore banks refer to domestic banks that provide comprehensive banking services to qualified enterprises operating abroad with the approval of the regulatory authorities, namely the former People's Bank of China, and absorb their deposits to support the loan activities of overseas enterprises in China. Then, compared with China's commercial banks, offshore banks have the following characteristics: First, offshore account is safe and confidential. Second, offshore account's funds can be freely transferred around the world, because the external funds of our offshore banks can't enter overseas, so the funds in the account can be freely transferred. Third, offshore bank deposits have tax-free opportunities compared with banks in the world. Fourth, our overseas business operates in China, which means that our company goes abroad and banks operate in China, which can reduce the company's costs. Fifth, some foreign companies we go abroad will choose preferential countries to run companies, so how can we avoid taxes reasonably?

Since offshore banks have such good advantages, let's take a look at the history of offshore business development. Offshore banks were established in London in the late 1950s. In the 1960s, it took shape in Europe for two reasons. First, the interest rate in the United States was very low in the 1960s, so the European market could absorb US dollar deposits. There are some profit-seeking factors. For example, the US dollar flows into the European market, such as the Eurodollar bonds in that market, in order to obtain high interest income in the European market. Second, we were in the financial market in London in the 1960s, for example. For British companies, if foreign companies registered in the UK were unable to get loans at that time. Therefore, foreign companies operating in Britain seek US dollar loans. Then, in the 1970s, some developing countries may try to attract more companies to register there. For example, some companies are now doing offshore business. In the 1980s, because of offshore entry into the market, especially the amount of US dollars and Japanese yen accounted for a very high proportion in all financial markets. Therefore, the United States and Japan have also taken some measures to absorb foreign dollars or yen funds. Therefore, offshore business has also begun to take shape in the United States or Japan, and a large number of Japanese yen or US dollars held by unexpected enterprises in Japan or the United States have been deposited in American banks.