Jersey Finance has welcomed the publication today of extensive academic research, the conclusions of which outline the numerous positive roles that well-regulated international financial centres, including Jersey, play in supporting growth around the world.
The report, International Finance Centers and the World Economy, is the result of 15 years of research by highly regarded US economist Professor James Hines Jr of the University of Michigan and the National Bureau of Economic Research. The report was commissioned by the Society of Trust and Estate Practitioners (STEP), the global professional body for practitioners working in the field of trust, estates and executorship.
Referencing a diverse range of sources, the ‘Hines Report’ concludes that ‘the evidence indicates that IFCs contribute to financial development and stability in neighboring countries’ and that they ‘encourage investment, employment, and other aspects of business development in high-tax countries, have salutary effects on tax competition, promote good government, and enhance economic growth elsewhere’.
Commenting on the findings of the report, STEP believes the report shows that ‘offshore centres such as Jersey play a vital role in the international financial system, improving the availability of credit and encouraging competition in domestic banking systems’.
The report follows on from the publication last week of the HM Treasury’s ‘Review of British Offshore Financial Centres’, which found that the Crown Dependencies make a significant contribution to the liquidity of the UK market, providing a combined net financing to UK banks of $332.5 billion in the second quarter of 2009, with Jersey providing in the region of $218.3 billion of that total.
Geoff Cook, chief executive, Jersey Finance, said:
‘We have always understood that Jersey makes a positive contribution to the City of London and thereby to the economy of the UK. Now we have the independent evidence to show that not only is this the case, but that there are also global benefits to well-regulated international finance centres like Jersey, including wealth creation, employment, tax competition and high standards of governance.
‘This is a significant, authoritative, detailed and credible research document compiled by a leading economist in the US and is further evidence of the valuable role played by leading international finance centres, backing up the findings of the Foot Review published only last week.’
For further information, please contact Geoff Cook, Chief Executive, Jersey Finance Limited, on tel. +44 (0) 1534 836011 e-mail firstname.lastname@example.org
Or Adam Riddell, Crystal Public Relations, on tel. +44 (0) 1534 639505 or e-mail email@example.com