[The Costs and Benefits of Establishing an International Banking Center in Anchorage]

GAO discussed the costs and benefits of offshore banking operations, specifically the feasibility of establishing an international banking center in Anchorage, Alaska. GAO noted that: (1) the primary financial centers obtain important benefits, such as new jobs and tax revenues, from offshore banking operations; and (2) secondary centers provide local access to foreign skills and markets and generate local employment and government revenue. GAO also noted that offshore banking operations in Anchorage: (1) would diversify Alaska's economic base away from oil and generate new revenue; (2) would require financial incentives to promote growth; (3) could have difficulty in attracting multinational banks and offshore funds if it does not develop capital markets; and (4) would require careful cost-benefit analysis as well as critical policy decisions on the part of Alaska.