Industry representatives in the British Virgin Islands are shouting it from the rooftops: BVI’s financial services sector is a boon to the global economy.
A recently released economic impact report commissioned by BVI Finance shows:
417,000 companies are registered in BVI
The companies have US$1.5 trillion in global assets
The sector supports 2.2 million jobs worldwide.
Impressive as the results are from our British colonial cousin (applause, applause), we are certain that a similar analysis of the Cayman Islands’ global impact would yield similar – perhaps larger – figures.
As a matter of fact, we happen to have at hand one such study, which was conducted by University of Amsterdam researcher Jan Fichtner, who wrote about his findings in the latest issue of our sister publication Cayman Financial Review (CFR), and which we also referred to in a story in the most recent issue of another Pinnacle Media publication, Grand Cayman Magazine.
If, as we would hope, local industry group Cayman Finance (our country’s counterpart to BVI Finance) is considering trumpeting the success of our all-important financial services sector, here are a few bullet points from Mr. Fichtner’s research that are well worth highlighting:
Cayman is home to US$4 trillion in investments from abroad
More than US$2.6 billion of that is in foreign portfolio investments, notably hedge funds
Cayman is not only a vital conduit to invest in U.S. financial markets, but also acts as a mechanism for “round-tripping” for U.S. investors who use Cayman-based funds to buy U.S. securities.
As Mr. Fichtner wrote in CFR, “In fact, when excluding U.S. long-term debt, of which the central banks from both Japan and China hold more than $1,000 billion each, Cayman is the largest holder of U.S. securities in the world.”
“Cayman is not a random exotic small island financial center but a key component of contemporary global finance,” he said.