After reviewing financial relationships between the United Kingdom and Jersey, the Deputy Governor discussed:
- Offshore centres in international banking. 'The new perception by the offshore centres that they have common interests... is certainly beneficial for the world financial community as a whole. The immediate effect of International Banking Facilities in the United States may not be very dramatic either for London or for Jersey. 'The establishment of the IBFs may actually increase the overall size of the offshore markets... A major danger is, perhaps, that the establishment of IBFs in the United States may prompt similar developments in other countries, particularly Japan and Germany. This might lead to undesirable competition in fiscal laxity, and in that case some offshore centres might feel the draught more seriously.'
- The future of the euromarkets. 'I am in little doubt that the risks attaching to international lending are increasing... If risks are greater, then it is difficult to be entirely happy about returns which banks are securing on their international lending... In this more difficult environment, banks need to be even more meticulous in the appraisal of individual risks... Bank supervisors, for their part, have to set exacting standards of prudent behaviour...'
Offshore financial centres - speech by the Deputy Governor