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Attractive interest rates are a feature of all SIB products. By channeling available resources into profitable activity, the Bank is able to pay comparatively higher interest to depositors.
As a member of Stanford Private Wealth Management, the Bank has benefitted greatly from the services and support of wholly owned Stanford affiliates located throughout the world. SIB has received this benefit without the capital expenditures required for opening and maintaining multiple global offices. As a result, the Bank's operational and administrative costs are approximately 40 per cent of revenue, compared to other international banks, which generally allocate 60 per cent to 80 per cent.
Most banks generate their profits on the margin between interest and fees earned on loans and other credit facilities and interest paid on deposits. This singular investment strategy requires reserves for potential losses to be held in non-interest-bearing or non-revenue-generating accounts. This reduces earnings that could otherwise be paid to you as a higher return on their investments.
SIB's business model is different. Although the Bank earns income from credit facilities and fees, the majority of the Bank's assets are invested in globally diversified portfolios. The Bank's portfolio managers are assigned different sections of the portfolios within their realms of expertise, and they are given realistic return on investment goals, which are clearly defined and consistently monitored by SIB's investment committee.
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