The term "offshore banking" has many meanings. The most common definition involves an institution that is situated in a country which deals with foreign currencies and with non-residents. The following characteristics may have a substantial bearing on the success of an OBC :  ocation/time zone, political situation, economic stability, advanced telecommunication facilities, skilled personnel, the legal system, the secrecy of the banking system, foreign exchange relations and above all favourable taxation legislation and absence of certain government regulations. Absence of any of the above characteristics may inhibit the conduct of business by an Offshore Banking Centre. This thesis makes an assessment of these reconditions. Despite the vital importance of such an assessment, little attention has been paid to it in the recent past.