They are shifting assets from short-term deposits and real estate to more sophisticated instruments and equities. Lastly, Mr. Woodhouse indicated that domestic markets are benefiting from the effects of European Monetary Union. And if that is right, it is a level playing field,'' he said. Along with the historical developments, there is increased confidence among Europeans in the stability of their governments and currencies. Inflows into Paribas's domestic private banking operation were more than 30 percent higher in the first half of l998 than inflows into its international private banking section.
Offshore clients are essentially cross-border.
It is part of their natural travel pattern. But distinctions don't end completely with location. The two types of accounts typically require different services. ''For the most part,'' Mr. Woodhouse said, ''with offshore money which comes out of one country and is invested in another, you don't look at taxes there. A lot of those accounts are fairly tax-driven. They are U.K. clients trying to minimize their tax bills.