International Banking Facility - IBF

AAA

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 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 TERMS
  1. Asset Protection Trust

    A vehicle for holding an individual's assets to shield them from ...
  2. Shell Branch

    A branch location of a U.S. chartered bank located outside the ...
  3. Regulation K

    One of the regulations set forth by the Federal Reserve. Regulation ...
  4. Repatriable

    Refers to the ability of an asset to be moved from a foreign ...
  5. Balance Reporting

    A report by a bank to a customer, normally a company or organization, ...
  6. Merchant Bank

    A bank that deals mostly in (but is not limited to) international ...
Related Articles
  1. Investing Beyond Your Borders
    Insurance

    Investing Beyond Your Borders

  2. Pros And Cons Of Offshore Investing
    Personal Finance

    Pros And Cons Of Offshore Investing

  3. How Long Will Equity Income ETFs Remain ...
    Investing

    How Long Will Equity Income ETFs Remain ...

  4. Decoding “Normal” Interest Rates
    Economics

    Decoding “Normal” Interest Rates

comments powered by Disqus
Hot Definitions
  1. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  2. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  3. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  4. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  5. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
  6. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
Trading Center