DEFINITION of '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 country. The ledgers of these banks are usually kept at the bank's domestic headquarters or main office. Shell branches are frequently housed inside offshore banking centers.

BREAKING DOWN 'Shell Branch'

Shell branches provide relatively cheap access to the Eurocurrency markets. Many of these branches are located in the Bahamas and Cayman Islands. They are somewhat similar to international banking facilities, which are domestic shell branches of U.S. banks.

RELATED TERMS
  1. Branch Manager

    An executive who is in charge of the branch office of a bank ...
  2. Branch Banking

    Engaging in banking activities such as accepting deposits or ...
  3. Foreign Branch Bank

    A type of foreign bank that is obligated to follow the regulations ...
  4. Limited Service Bank

    Any type of banking business facility that is located separately ...
  5. Blue Chip Swap

    When a domestic investor purchases a foreign asset and then transfers ...
  6. Series 30

    A securities license entitling the holder to become a futures ...
Related Articles
  1. Personal Finance

    U.S. Banks Struggle To Reduce Branches (JPM)

    The efforts by U.S. banks to get lean by reduction in branch network are getting challenged by customers who won’t give up regular visits to the branch
  2. Investing

    Bank of America Tests Automated Branches

    Bank of America offers mortgage, credit card and auto loan service through virtual channels at its new smaller branches.
  3. Insights

    The 4 Biggest Chinese Banks

    Learn how the Chinese banking system is operated and managed, and get information about the top four largest banks in the country.
  4. Personal Finance

    HSBC to Shut Down Half of Retail Branches in India, Shed 300 Jobs (HSBC-PA)

    HSBC will close over half of its retail branches in India to keep pace with global businesses shifting to digital channels.
  5. Insights

    Why is JPMorgan Expanding in India When Other Banks Are Closing?

    While international banks like HSBC and Barclays are closing their branches in India, JPMorgan is expanding in India. Here's why.
  6. Investing

    Shell Will Cut 2800 Jobs After BG Merger

    On Monday, Royal Dutch Shell PLC announced to cut 2800 jobs after it completes its $70 billion takeover of BG Group PLC next year.
  7. Investing

    Shell Considers $40 Billion Spin-Off (RDS-A)

    Royal Dutch Shell PLC (RDS-A) is considering spinning off $40 billion worth of non-core assets.
  8. Insights

    How Online Banking Is Overtaking Traditional Banking

    Is traditional banking doomed to be surpassed by online banking?
  9. Investing

    Royal Dutch Stock: A Dividend Analysis (RDS-A)

    Learn about Royal Dutch Shell's strong track record of paying dividends. Understand how a dividend cut may be a risk with low commodity prices.
RELATED FAQS
  1. Who sets fiscal policy, the president or congress?

    Discover how fiscal policy is set in the United States, including how all three branches of government can affect a given ... Read Answer >>
  2. What does it mean to invest in money center banks?

    Invest in foreign and domestic banks when you invest in money center banks. You'll find these financial centers in many major ... Read Answer >>
  3. Should commercial and investment banks be legally separated?

    Find out why market risk isn't created by letting commercial and investment banks merge; it results from moral hazard and ... Read Answer >>
  4. Is the banking sector appropriate for a growth investor?

    Explore the suitability of bank stocks as a sector appropriate for growth investors to consider including in their investment ... Read Answer >>
  5. What is the difference between an investment and a retail bank?

    Learn the primary differences between retail banks and investment banks by examining the business activities, type of clients ... Read Answer >>
  6. Who controls the Federal Reserve Bank?

    Read about the ownership and control of the Federal Reserve, the most powerful financial institution in the world and the ... Read Answer >>
Hot Definitions
  1. Run Rate

    1. How the financial performance of a company would look if you were to extrapolate current results out over a certain period ...
  2. Hard Fork

    A hard fork (or sometimes hardfork) is a radical change to the protocol that makes previously invalid blocks/transactions ...
  3. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  4. Ethereum

    Ethereum is a decentralized software platform that enables SmartContracts and Distributed Applications (ĐApps) to be built ...
  5. Zero Day Attack

    Zero Day Attack is an attack that exploits a potentially serious software security weakness that the vendor or developer ...
  6. Effective Tax Rate

    The average rate at which an individual or corporation is taxed. The effective tax rate for individuals is the average rate ...
Trading Center