Search Investopedia

International Banking Facility - IBF

Filed Under » , ,
Dictionary Says

Definition of 'International Banking Facility - IBF'

A facility that allows depository institutions in the United States to offer deposit and loan services to foreign residents and institutions, while being exempted from reserve requirements imposed by the Federal Reserve and some state and local income taxes. Because of these exemptions, IBFs enable U.S. banks and U.S.-based financial institutions to compete more effectively for overseas deposits and loans business in the Eurocurrency markets.
Investopedia Says

Investopedia explains 'International Banking Facility - IBF'

While banks are permitted to conduct IBF activities from their existing offices, they are required to maintain separate books for their IBF business. The Federal Reserve Board of Governors approved the establishment of IBFs in the early 1980s. IBF operations remain under the jurisdiction of the Federal Reserve and other state and federal regulators.

Related Definitions

  •

    Bank

    A financial institution licensed as a receiver of deposits. There are two types of banks: commercial/retail banks and investment banks. In most countries, banks are regulated by the ...
    Read More »

  • Merchant Bank

    A bank that deals mostly in (but is not limited to) international finance, long-term loans for companies and underwriting. Merchant banks do not provide regular banking services to the ...
    Read More »

  • Reserve Requirements

    Requirements regarding the amount of funds that banks must hold in reserve against deposits made by their customers. This money must be in the bank's vaults or at the closest Federal ...
    Read More »

    • Offshore

      1. Located or based outside of one's national boundaries. The term offshore is used to describe foreign banks, corporations, investments and deposits. A company may legitimately move ...
      Read More »

    • International Bank Account Number - IBAN

      A standard numbering system developed to identify bank accounts from around the world. It was originally developed by banks in Europe to simplify transactions involving bank accounts ...
      Read More »

    • Offshore Mutual Fund

      A mutual fund that is based in an offshore jurisdiction, which is generally considered to be outside the United States. The term is often used, perhaps incorrectly, to describe a fund ...
      Read More »

    • Balance Reporting

      A report by a bank to a customer, normally a company or organization, informing the customer of the balances in their accounts. These real-time reports are key to the customer's ...
      Read More »

    • Repatriable

      Refers to the ability of an asset to be moved from a foreign country back to an investor's home country. Assets such as cash and securities are considered highly repatriable, while ...
      Read More »

    • Regulation K

      One of the regulations set forth by the Federal Reserve. Regulation K provides governance on the international banking front, offering guidelines for bank holding companies that engage ...
      Read More »

    • Shell Branch

      A branch location of a U.S. chartered bank located outside the United States. Shell branches function as booking offices for the bank's financial transactions that happen outside the ...
      Read More »

Articles Of Interest

Sponsored links
Hot Definitions
Partner Links
Suggested Definitions