Shell Branch

AAA

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.

INVESTOPEDIA EXPLAINS '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 Accounting

    An accounting system in which separate accounts are maintained ...
  2. Mini-Branch

    A special type of bank branch that offers only limited products ...
  3. Branch Banking

    Engaging in banking activities such as accepting deposits or ...
  4. Eurocurrency

    Currency deposited by national governments or corporations in ...
  5. International Banking Facility ...

    A facility that allows depository institutions in the United ...
  6. Chartered Bank

    A financial institution whose primary roles are to accept and ...
Related Articles
  1. Bag The Best Bank Account
    Insurance

    Bag The Best Bank Account

  2. The Evolution Of Banking
    Credit & Loans

    The Evolution Of Banking

  3. Your First Checking Account
    Insurance

    Your First Checking Account

  4. Banking Stress Tests: Would Yours Pass?
    Credit & Loans

    Banking Stress Tests: Would Yours Pass?

comments powered by Disqus
Hot Definitions
  1. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  2. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  3. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  4. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  5. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
  6. Earnings Before Interest After Taxes - EBIAT

    A financial measure that is an indicator of a company's operating performance. EBIAT, which is equivalent to after-tax EBIT ...
Trading Center