Off-balance sheet financing - The process whereby a contingent (dependent on certain events) liability is not recorded as a liability on the balance sheet but typically appears in the notes to the financial statement. Off-balance sheet financing is therefore not reflected in the balance sheet total, although possible related reserves will.
Offshore Banking - By popular usage, the establishment and operation of US or foreign banks in such offshore tax havens as the Bahamas and the Cayman Islands.
Offshore Banking Unit (OBU) - A bank in an offshore financial center, not allowed to conduct business in the domestic market but only with other OBU’s or with foreign persons.
Offshore Booking Centers - An offshore financial center used by international banks as a location for "shell branches" to book certain deposits and loans. Such offshore bookings are often utilized to avoid regulatory restrictions and taxes.
Offshore Company - See International Business Company.
Offshore Financial Centers - A country or jurisdiction where an intentional attempt has been made to attract foreign business by deliberate government policy such as the enactment of secrecy laws and tax incentives.
Offshore Group of Banking Supervisors (OGBS) - Established in October 1980 at the instigation of the Basle Committee on Banking Supervision with which the Group maintains close contact. The primary objective of OGBS is to promote the effective supervision of banks in their jurisdictions and to further international cooperation in the supervision between the Offshore Banking Supervisors and between them and Basle Committee member nations and other banking supervisors. Current OGBS members are: Aruba, Bahamas, Bahrain, Barbados, Bermuda, Cayman Islands, Cyprus, Gibraltar, Guernsey, Hong Kong, Isle of Man, Jersey, Lebanon, Malta, Mauritius, Netherlands Antilles, Panama, Singapore and Vanuatu.
Offshore Limited Partnership - A partnership, the general partner of which is an offshore company. The limited partners may be onshore entities.
Offshore Profit Centers - Branches of major international banks and multinational corporations located in a low tax financial center which are established for the purpose of lowering taxes.
Offshore Trust - The quality that differentiates an offshore trust from an onshore trust is portability. The offshore trust can be transferred to additional jurisdictions to maintain confidentiality and to advantage desirable facets of the new jurisdictions laws.
One-year Zeros - An obligation of a bank due in one year and sold at a discount from face value in lieu of an interest coupon.
Ordinary Shares - The most common form of shares. Holders receive dividends which vary in accordance with the profitability of the company and the recommendations of the directors. The holders of the ordinary shares are the owners of the company.