What are the shadow banking systems and offshore tax havens?
The shadow banking system are financial institutions (not banks) are willing to lend money to businesses and a bank. A good pair of examples of those who have been in the news are Bear Stearns and Lehman Brothers to look. In a tax haven, in general, is a place, usually a government where corporate taxes are lower. For example, in Nevada, some companies do not pay taxes the State. An offshore tax haven would be a different country where taxes are cheaper than the U.S.. Goverments compete for revenue as any other business making and therefore offer some incentives to come do business there.
Monaco defends its tax haven status – 21 Jun 09
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