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.
