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Traditional haven faces challenge

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SCMP Reporter

ONE of life's more elegant little paradoxes is that offshore banking thrives on crisis.

The typical and traditional knee-jerk reaction to sudden events such as the outbreak of war, for example, is to buy into gold.

A more sophisticated and longer-term solution is to park one's resources in one of the world's centres famed for its ability to sail smoothly through the roughest storms.

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Guernsey is one such safe haven. In an important sense, the tiny island is like a swan . . . serenely graceful on the surface, paddling furiously below.

Superficially, Guernsey remains a tranquil, private place but, underneath, it has been forced into increasingly aggressive marketing to retain its position in the hierarchy of offshore banking centres.

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Competition from more recently established newcomers, such as Dublin and Luxembourg, has threatened to erode Guernsey's ranking.

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