The Role of Corporate, Professional, and Personal Networks in the Provision of Offshore Financial Services

Abstract

In a small island offshore financial center (OFC), different kinds of networks influence the provision of financial services. In this paper I will analyze the roles played by corporate, professional, and personal networks in the creation of a superior reputation among competing OFCs. Empirical evidence has shown that the success of an OFC is driven by appropriate financial regulation and supervision addressing the critical precepts of reputation and trust. Such spatially focused regulation can be created by networks of professional associations such as banking or insurance associations interacting with public sector officials on a regular basis. Continued growth of an OFC occurs through marketing efforts of both corporate and personal networks. The dynamic nature of these networks and their social structure encompassing power and gender relations will be explored.