The complexity and the variety of the scope of the offshore banking make it difficult in a way to come up with a certain and all-inclusive definition of what offshore banking represents. We got used to such words as ‘offshore banking center’, ‘international banking center’, ‘’international financial center or even ‘world financial center’. One thing is sure that the term tax haven in a way became obsolete when someone tries to describe what offshore banking is, what are its functions and scope. The scholarly defines the term ‘offshore banking centers’ as “cities, areas or countries which have made a conscious effort to attract non-resident foreign currency-dominated business by adopting a flexible attitude where taxes and regulations are concerned”.
The term ‘offshore’ refers to a quality that defines either investment located purposely in certain foreign jurisdictions in which the legislation and tax regulations are less restrictive and flexible in terms or example of taxation if compared to that present within their home jurisdiction.
If the above referred elements are present surprising results can pop up. It is possible for offshore facilities to be located in tax regimes which as a rule are viewed as having strict financial regulatory environment in relation to their own nationals, but make exceptions for non-residents.
The scholarly specializing in offshore issues gave many times a wide range of definitions to the concept of what offshore 
banking represents and of course there is none unanimously agreed on. It is important to note that in theory, offshore banking is not limited to developing countries that seek to capitalize on financial profit flows from capital exporting states, even though the majority of offshore financial centers are located mainly in such countries. Such an approach would be erroneous. A realistic definition has to refer mainly to the regime that regulates the financial and business sectors which is characterized as being more flexible and usually targeting the needs of non-residents.
There are four main business time zones that have to be mentioned if talking about offshore banking sector:
- The European sector, including self-regulated islands (e.g. Isle of Man, Jersey, Switzerland, Liechtenstein, Luxemburg, Republic of Ireland, Guernsey);
- The Caribbean/Central American basin (e.g. Panama, Bermuda, Grenada, Virgin Islands, The Turks and Caicos Islands, Anguilla, St. Vincent, Belize, Costa Rica, Cayman Islands, Dominica, Barbados, St. Lucia, Antigua, and Bahamas);
- The Persian Gulf states (including Bahrain, Lebanon, Liberia, );