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. Merchant Bank

    A bank that deals mostly in (but is not limited to) international ...
  6. Offshore

    1. Located or based outside of one's national boundaries. The ...
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. 7 Misconceptions About The Federal Reserve
    Economics

    7 Misconceptions About The Federal Reserve

  4. Combating Retirement's Silent Killer: ...
    Retirement

    Combating Retirement's Silent Killer: ...

comments powered by Disqus
Hot Definitions
  1. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  2. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  3. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  4. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  5. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  6. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
Trading Center