Offshore Banking Glossary

Asset

An asset is any property with a cash value, such as real estate, equipment, savings, and investments.

Bearer Shares

Any corporation is owned by its shareholders. In most countries, every share that is issued by a company needs to be registered with a government agency, so the government and other agencies know who owns each share in a company, and how much each share was traded for. Offshore companies generally issue bearer shares. These shares belong to the person who holds them, the bearer, and are not registered with a central authority. As such bearer shares may be bought and sold without records of who owns the share or how much was paid for the share.

Deposit

The money you put into a bank account.

Electronic Banking

Most banks and building societies now allow their customers to access their bank account details electronically, using a computer, interactive television, or even their mobile telephone. Electronic banking services now also encompass almost the full range of services available from a bank, including setting up payments, applying for loans and mortgages.

Equity

Equity is the value of your home when outstanding mortgage amounts and other loans have been subtracted. Thus, if your home is valued at £100,000 and your outstanding mortgage is £75,000, you are said to have £25,000 equity in your home. Equity can be turned into cash quite easily, as many companies are willing to offer loans secured against any equity you have.

Financial Statement

A financial statement is a written record provided by the bank which records your financial circumstances and transactions. The financial statement generally includes a record of the money entering your account, the money paid out and your current balance.

Fixed Rate Loan

A fixed rate loan is a loan with a set rate of interest that either does not vary for the entire life of the loan or is set or 'fixed' for a specified period (months or years).

Income

Your income is the total amount of money you receive from all sources, including wages, commissions, bonuses, government or retirement benefits, compensation claims, interest and dividends on all investments.