OECD Analysis: Impact of CRS on Offshore Bank Deposits

The OECD has published an analysis of the impact of CRS on bank deposits in IFC’s.

The study, to be followed by a more detailed paper later in the year, shows bank deposits falling by USD$551 billion (34% since the 2008 Financial Crisis). Guernsey, Isle of Man, Jersey and Switzerland are identified as losing the most, while perplexingly Hong Kong and Macau increased their share of deposits over the period (2008 - 2018). The source of new deposits into Hong Kong and Macau is not identified in the summary.

The study concludes that attrition of bank deposits mostly affected individual deposit holders and not entities (such as offshore trusts and companies).

The OECD admit correlation of data is difficult, that over the sample period (2008 - 2018) the greatest attrition directly followed the 2008 Financial Crisis (22%) with the balance thereafter (12%).

The paper confirms that later analytical work will need to reference other asset classes including shares, property and insurance products; this is welcome in order to present a more balanced picture.