(31) Featured statistic: EUR 10 billion

Dutch bank claims on the Cayman Islands, a major offshore financial centre, totalled over EUR 10 billion in the third quarter of 2005. They consist of international loans. Dutch banks do not have local exposures in the local currency.

As the islands have attractive legislation (such as the absence of direct taxation) and  a well-developed financial infrastructure, many international (financial) enterprises have a presence there, from which they service notably the international market.

Given its international nature, relatively much risk is shifted from offshore financial centres to other countries. The ultimate risk run by Dutch banks in respect of the Cayman Islands has shrunk to around EUR 3 billion, i.e. 29% of claims before risk shifts.

Graph - Dutch bank claims on the Cayman Islands