Private banking

Private banking is banking, investment and other financial services provided by banks to high-net-worth individuals with high levels of income or invest sizable assets. The term "private" refers to customer service rendered on a more personal basis than in mass-market retail banking, usually via dedicated bank advisers. It does not refer to a private bank, which is a non-incorporated banking institution.

Private banking forms a more exclusive (for the especially affluent) subset of wealth management. At least until recently, it largely consisted of banking services (deposit taking and payments), discretionary asset management, brokerage, limited tax advisory services and some basic concierge-type services, offered by a single designated relationship manager.

Overview

Private banking is the way banking originated. The first banks in Venice were focused on managing personal finance for wealthy families. Private banks became known as ‘Private’ to stand out from the retail banking & savings banks aimed at the new middle class. Traditionally, private banks were linked to families for several generations. They often advised and performed all financial & banking services for families. Historically, private banking has developed in Europe (see the List of private banks). Some banks in Europe are known for managing assets of some royal families. The assets of the Princely Family of Liechtenstein are managed by LGT Group (founded in 1920 and originally known as The Liechtenstein Global Trust). The assets of the Dutch royal family are managed by MeesPierson (founded in 1720). The assets of the British Royal Family are managed by Coutts (founded in 1692).

Cayman Islands

Coordinates: 19°30′N 80°30′W / 19.500°N 80.500°W / 19.500; -80.500

The Cayman Islands (/ˈkeɪmən/ or /keɪˈmæn/) are a British Overseas Territory in the western Caribbean Sea. The territory comprises the three islands of Grand Cayman, Cayman Brac and Little Cayman, located south of Cuba and northwest of Jamaica. The Cayman Islands are considered to be part of the geographic Western Caribbean Zone as well as the Greater Antilles. The territory is often considered a major world offshore financial haven for many wealthy individuals.

History

The Cayman Islands remained largely uninhabited until the 17th century. While there is no archaeological evidence for an indigenous people on the islands, a variety of settlers from various backgrounds made their home on the islands, including pirates, refugees from the Spanish Inquisition, shipwrecked sailors, and deserters from Oliver Cromwell's army in Jamaica.

The first recorded permanent inhabitant of the Cayman Islands, Isaac Bodden, was born on Grand Cayman around 1661. He was the grandson of the original settler named Bodden who was probably one of Oliver Cromwell's soldiers at the taking of Jamaica in 1655.

Grand Cayman

Coordinates: 19°20′N 81°13′W / 19.333°N 81.217°W / 19.333; -81.217

Grand Cayman is the largest of the three Cayman Islands and the location of the territory's capital, George Town. In relation to the other two Cayman Islands, it is approximately 75 miles (121 km) southwest of Little Cayman and 90 miles (145 km) southwest of Cayman Brac.

Geography

Grand Cayman encompasses 76% of the territory's entire land mass. The island is approximately 22 miles (35 km) long with its widest point being 8 miles (13 km) wide. The elevation ranges from sea level at the beaches to 60 feet (18 m) above sea level on the North Side's Mastic Trail.

Island districts

Grand Cayman Island includes five of the six districts of the Cayman Islands: Bodden Town, East End, George Town, North Side, and West Bay.

Island

An island /ˈaɪlənd/ or isle /ˈaɪl/ is any piece of sub-continental land that is surrounded by water. Very small islands such as emergent land features on atolls can be called islets, skerries, cays or keys. An island in a river or a lake island may be called an eyot or ait, or a holm. A grouping of geographically or geologically related islands is called an archipelago, e.g. the Philippines.

An island may be described as such despite the presence of an artificial land bridge, for example Singapore and its causeway, or the various Dutch delta islands, such as IJsselmonde. Some places may even retain "island" in their names for historical reasons after being connected to a larger landmass by a wide land bridge, such as Coney Island or Coronado Island. Conversely, when a piece of land is separated from the mainland by a man-made canal, for example the Peloponnese by the Corinth Canal, it is generally not considered an island.

There are two main types of islands: continental islands and oceanic islands. There are also artificial islands.

Bank

A bank is a financial institution that creates credit by lending money to a borrower, thereby creating a corresponding deposit on the bank's balance sheet. Lending activities can be performed either directly or indirectly through capital markets. Due to their importance in the financial system and influence on national economies, banks are highly regulated in most countries. Most nations have institutionalized a system known as fractional reserve banking under which banks hold liquid assets equal to only a portion of their current liabilities. In addition to other regulations intended to ensure liquidity, banks are generally subject to minimum capital requirements based on an international set of capital standards, known as the Basel Accords.

Banking in its modern sense evolved in the 14th century in the rich cities of Renaissance Italy but in many ways was a continuation of ideas and concepts of credit and lending that had their roots in the ancient world. In the history of banking, a number of banking dynasties — notably, the Medicis, the Fuggers, the Welsers, the Berenbergs and the Rothschilds — have played a central role over many centuries. The oldest existing retail bank is Monte dei Paschi di Siena, while the oldest existing merchant bank is Berenberg Bank.