What is subsidiary bank of offshore bank unit?

A subsidiary bank of an offshore bank unit refers to a banking institution that operates under the regulatory framework of an offshore banking jurisdiction but is owned or controlled by a parent bank or financial institution. This subsidiary can provide a range of banking services, often with favorable tax conditions and regulatory advantages, catering primarily to international clients. By establishing a subsidiary, the parent bank can expand its global reach and offer specialized services without being subject to the same regulations as domestic banks.